Question 1

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 extra payment for services rendered to the partnership beyond their share of the profits, unless there is an agreement to the contrary. This means that without a specific agreement, Luke would not be entitled to additional compensation for the extra hours he works compared to Spencer.

Question 2

Compare sole proprietorships, general partnerships, and limited partnerships with regard to ease of formation, liability of owners, control, taxation, and continuity.

Accepted Answer

The answer of Compare sole proprietorships, general partnerships, and limited...

Question 3

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

Accepted Answer

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

Question 4

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 5

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 personally liable if:

Accepted Answer

The answer of Mount Pleasant Tires does not have sufficient...

Question 6

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 7

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 and simplest form of business to form, as it involves no formal registration requirements with the state.

Question 8

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.Identify...

Question 9

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

Accepted Answer

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

Question 10

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

The correct answer is D) business trust. Business trusts are often used to avoid the burdens of corporate regulation, including restrictions that historically prevented corporations from owning and dealing in real estate. They are particularly useful for asset securitization ventures, allowing for the pooling of assets to be managed and for investors to benefit from the trust's operations without the regulatory constraints faced by corporations.

Quiz 31: Formation and Internal Relations of General Partnerships