Question 1

Bert and Philip have decided to form a partnership to operate a lawn care service. Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Accepted Answer

The answer of Bert and Philip have decided to form...

Question 2

Anita is hired to manage an unincorporated dress boutique owned by Betty. The two agree that Anita will receive one-third of the net profits, which amount is to be paid to her on a monthly basis. Is Anita a partner? If the boutique has a loss instead of a profit, would Anita have to share the loss? Explain.

Accepted Answer

The answer of Anita is hired to manage an unincorporated...

Question 3

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business. Jess, a business owner, is not personally liable if:

Accepted Answer

As a shareholder of a corporation, Jess has limited liability and is not personally liable for the corporation's debts or torts unless he personally committed the tort or there is a legal basis to pierce the corporate veil.

Question 4

Compare "partnership property" with a "partner's interest." Consider such factors as the definition, the possession, the assignability, how attachment occurs, and the inheritability of each.

Accepted Answer

The answer of Compare "partnership property" with a "partner's interest."...

Question 5

In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a:

Accepted Answer

A general partnership is the easiest form of business to establish, as it requires minimal formalities and paperwork compared to other business structures.

Question 6

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer. Spencer only spends about 30 hours a week on partnership business. Under the RUPA:

Accepted Answer

Under the Revised Uniform Partnership Act (RUPA), partners are not entitled to compensation for services rendered to the partnership unless there is an agreement stating otherwise. Therefore, unless Luke and Spencer have an agreement that provides for compensation for extra work, Luke is not entitled to payment for his additional hours.

Question 7

Ed, Vivian, and Pablo enter a partnership. Identify the source of the duties among the partners and whether these can be waived or varied. Name the principal duties Ed, Vivian, and Pablo have to each other and to the partnership.

Accepted Answer

The answer of Ed, Vivian, and Pablo enter a partnership....

Question 8

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

Accepted Answer

A business trust is often used for asset securitization ventures and can avoid some corporate regulations, such as those related to real estate ownership.

Question 9

Assume that you and your best friend have decided to form a partnership after graduation. You have both studied business law, so you both know the importance of having a written partnership agreement. Summarize the clauses that you would include in your partnership agreement.

Accepted Answer

The answer of Assume that you and your best friend...

Question 10

What are the ways the RUPA recognizes a partnership as an entity?

Accepted Answer

The answer of What are the ways the RUPA recognizes...

Quiz 30: Formation and Internal Relations of General Partnerships