Solved

John McLeod and His Daughter Lucy Form a Partnership to Buy

Question 1

Multiple Choice

John McLeod and his daughter Lucy form a partnership to buy and sell exotic guinea pigs.They agree to share the profits equally but do not make any mention in the partnership agreement of how any business capital is to be shared.John originally contributes equipment worth $2000 and Lucy contributes her expertise as a breeder.When the partnership is dissolved Lucy insists upon receiving half of the value of the equipment.Is Lucy entitled to claim this amount?


A) Yes, the equipment has become partnership property.
B) No, the equipment still belongs to John.
C) Yes, Lucy is entitled to half of everything John owns.
D) No, because Lucy's expertise cannot be 'halved'.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents