Multiple Choice
Reference - Partnership Disruption. Bruce, Sandra, and Minnie want to form a partnership to assist students with resume preparation and employment searches. Bruce asks Sandra and Minnie if they should draw up some sort of agreement. Sandra replies that a written agreement is not legally required and that an oral agreement will set up a partnership. Upon the urging of Bruce and Minnie, however, Sandra agreed to a written agreement. Sandra has an opportunity to assist some students with resumes and does so without revealing her employment to the partnership. She keeps the funds she receives for herself. When Bruce and Minnie found out, Sandra replied that she was doing two-thirds of the partnership work; that she, therefore, had a majority of the voting rights; and that her actions were appropriate. The articles of partnership did not address the right to share in management, but Bruce and Minnie strongly disagreed with Sandra. Which of the following is correct regarding Sandra's statement to the effect that she had greater management rights because she was doing a greater percentage of work for the partnership?
A) Sandra is incorrect because unless otherwise stated in the articles of partnership, all partners share equally in the management of the partnership.
B) Sandra is incorrect because unless otherwise stated in the articles of partnership, partners share in management rights in proportion to their rights to profits.
C) Sandra is incorrect because unless otherwise stated in the articles of partnership, partners share in management rights in proportion to their obligation for losses.
D) Sandra is correct only if the proportion of work she was doing was inequitable.
E) Sandra is correct.
Correct Answer:

Verified
Correct Answer:
Verified
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