Exam 38: Operation of Partnerships and Related Forms

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Gillie, Taft, and Dall are partners in an architectural firm. The partnership agreement is silent about the payment of salaries and the division of profits and losses. Gillie works full-time in the firm, and Taft and Dall each work half-time. Taft invested $120,000 in the firm, and Gillie and Dall invested $60,000 each. Dall is responsible for bringing in 50 percent of the business, and Gillie and Taft 25 percent each. How should profits of $120,000 for the year be divided?

(Multiple Choice)

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Question 41

Donna is a partner of Don-Tel Lawn Care, a partnership in the business of providing lawn care services. While mowing a lawn using a partnership mower, Donna negligently runs over a piece of metal, sending pieces of metal flying through the air. One piece hits the client's patio door and shatters the glass. Is Donna liable to the client? Are Donna's partners liable to the client?

(Essay)

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Question 42

In a partnership, when a partner makes a secret profit through a business transaction, what is the remedy for such a breach?

(Multiple Choice)

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Question 43

A partnership does not have the authority to ratify the unauthorized act of partners.

(True/False)

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Question 44

Stella, Bob, and Chris are partners in Sole Services, a general partnership that runs a small shoe store. Stella and Bob want to buy the building that they are currently renting, but Chris does not agree. How will this disagreement be resolved?

(Multiple Choice)

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Question 45

Kate is a partner in a limited liability partnership (LLP) which provides accounting services. Acting within her authority, Allie, who is one of Kate's subordinates, negligently provides accounting services to a client. The client sues the LLP and its partners. Which of the following is incorrect?

(Multiple Choice)

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Question 46

The standards and principles of agency law's respondeat superior are applied in determining the liability of the partnership and of the other partners for the torts of a partner and other partnership employees.

(True/False)

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Question 47

Sharon and Martha are general partners in the SM general partnership. Sharon, acting with authority, negotiated and signed for a $500,000 loan to SM from a bank. SM has not repaid this loan. The bank can recover its loan from:

(Multiple Choice)

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Question 48

The apparent authority of a partner to bind the partnership in dealing with third parties:

(Multiple Choice)

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Question 49

In a partnership, are partners liable for the crimes committed by another partner? Explain.

(Essay)

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Question 50

Which of the following is true about partnership agreements?

(Multiple Choice)

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Question 51

Partners are not liable to their partnership for losses resulting from:

(Multiple Choice)

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Question 52

A partner may personally profit from a partnership transaction when he or she deals in good faith with the partnership.

(True/False)

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Question 53

Gary and Felix are partners in a general partnership. Gary does 2/3^rd of the partnership work, while Felix does 1/3^rd of the work. Last year the partnership earned $300,000 in profits. Under the RUPA, how much of the $300,000 is Felix entitled to receive?

(Multiple Choice)

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Question 54

Morgan is a silent partner at Mathers & Sons, a general partnership. Because he is only a silent partner, he does not have:

(Multiple Choice)

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Question 55

In a partnership, some classes of partners may have greater voting rights than others.

(True/False)

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Question 56

A partner of a firm that leases residential property to college students allows his daughter to live in a partnership-owned apartment. Based on this situation, this partner:

(Multiple Choice)

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Question 57

A partnership's liability for the torts of a partner committed within the ordinary course of partnership business or within the authority of that partner is:

(Multiple Choice)

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Question 58

_____ occur(s) when partners accept an act of a partner who had no actual or apparent authority to do the act when it was done.

(Multiple Choice)

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Question 59

In a partnership, partners may not compete against their own partnership unless:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 60

Exam 38: Operation of Partnerships and Related Forms

In a partnership, when a partner makes a secret profit through a business transaction, what is the remedy for such a breach?

A partnership does not have the authority to ratify the unauthorized act of partners.

Stella, Bob, and Chris are partners in Sole Services, a general partnership that runs a small shoe store. Stella and Bob want to buy the building that they are currently renting, but Chris does not agree. How will this disagreement be resolved?

Kate is a partner in a limited liability partnership (LLP) which provides accounting services. Acting within her authority, Allie, who is one of Kate's subordinates, negligently provides accounting services to a client. The client sues the LLP and its partners. Which of the following is incorrect?

The standards and principles of agency law's respondeat superior are applied in determining the liability of the partnership and of the other partners for the torts of a partner and other partnership employees.

Sharon and Martha are general partners in the SM general partnership. Sharon, acting with authority, negotiated and signed for a $500,000 loan to SM from a bank. SM has not repaid this loan. The bank can recover its loan from:

The apparent authority of a partner to bind the partnership in dealing with third parties:

In a partnership, are partners liable for the crimes committed by another partner? Explain.

Which of the following is true about partnership agreements?

Partners are not liable to their partnership for losses resulting from:

A partner may personally profit from a partnership transaction when he or she deals in good faith with the partnership.

Gary and Felix are partners in a general partnership. Gary does 2/3rd of the partnership work, while Felix does 1/3rd of the work. Last year the partnership earned $300,000 in profits. Under the RUPA, how much of the $300,000 is Felix entitled to receive?

Morgan is a silent partner at Mathers & Sons, a general partnership. Because he is only a silent partner, he does not have:

In a partnership, some classes of partners may have greater voting rights than others.

A partner of a firm that leases residential property to college students allows his daughter to live in a partnership-owned apartment. Based on this situation, this partner:

A partnership's liability for the torts of a partner committed within the ordinary course of partnership business or within the authority of that partner is:

_____ occur(s) when partners accept an act of a partner who had no actual or apparent authority to do the act when it was done.

In a partnership, partners may not compete against their own partnership unless:

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Crimes

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business Andformation of Partnerships

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Agencies

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters

Gary and Felix are partners in a general partnership. Gary does 2/3^rd of the partnership work, while Felix does 1/3^rd of the work. Last year the partnership earned $300,000 in profits. Under the RUPA, how much of the $300,000 is Felix entitled to receive?