Question 1

Elion was a partner in a partnership. Elion's death would be considered a wrongful dissociation.

Accepted Answer

A) True 
 B)False

Question 2

Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas's personal assets.

Accepted Answer

A) True 
 B)False

Question 3

Doyle contributed $10,000 when he became a general partner in the existing partnership of R & Z Heating. If Albert wins a judgment for $25,000 against R & Z on a claim that was incurred before Doyle became a partner, Doyle shares joint and several liability with his new partners for the whole obligation.

Accepted Answer

A) True 
 B)False

Question 4

Max, Jenny, and Craig are partners. They have purchased an elegant Victorian home and converted it into an office for their partnership. Craig decides to use the partnership's office to host some evening parties. Craig has a sideline business of arranging expensive gatherings and charging each person a handsome price to attend these "elite" parties. When Max and Jenny find out what Craig is doing, they demand that he pay them for the use of the property. How much money, if any, is Craig required to pay the partnership?

Accepted Answer

A)   Nothing. He is free to use partnership property for his own uses.
B)   Nothing, but he will be removed from the partnership for violating his fiduciary duty.
C)   He must turn over any profits he earned from this activity.
D)   He must pay the fair market value for the use of the house.E) B) and D)
F) A) and B)

Question 5

Art and Alma made capital contributions of 60% and 40% respectively to their newly formed partnership, AA & Associates. They did not have a written partnership agreement. At the end of the first year, the partnership made a profit of which Alma now claims half. However, Art maintains he should receive 60%. Who is correct?

Accepted Answer

A)   Art, since the UPA presumes that profits and losses are divided in proportion to capital contribution.
B)   Art, since it would only be fair.
C)   Alma, because she works in the business.
D)   Alma, as the UPA provides that profits are split equally unless the partners agree otherwise.E) A) and C)
F) All of the above

Exam 32: Partnerships

Correct Answer
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Correct Answer
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Correct Answer
verified

Elion was a partner in a partnership. Elion's death would be considered a wrongful dissociation.

Correct Answer
verified

Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas's personal assets.

Correct Answer
verified

Exam 32: Partnerships

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Elion was a partner in a partnership. Elion's death would be considered a wrongful dissociation.

Correct AnswerverifiedShow Answer

Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas's personal assets.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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