Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.
-Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each)and four high-powered drills ($30,000 each).Suzanne's husband says that he just wants to take possession of one of the dental chairs and two of the drills.Which of the following is correct?
A)Suzanne's husband has a right to one-half of the partnership inventory.
B)Suzanne's husband has no right in the partnership or its inventory since the right of survivorship leaves Becca with the business.
C)The chairs and drills belong to BFSP and cannot be taken by Suzanne's husband.
D)After the business is restructured, Suzanne's husband can have the chair and drills.

Question

Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.​
-Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each)and four high-powered drills ($30,000 each).Suzanne's husband says that he just wants to take possession of one of the dental chairs and two of the drills.Which of the following is correct?
A)​Suzanne's husband has a right to one-half of the partnership inventory.
B)​Suzanne's husband has no right in the partnership or its inventory since the right of survivorship leaves Becca with the business.
C)The chairs and drills belong to BFSP and cannot be taken by Suzanne's husband.
D)After the business is restructured, Suzanne's husband can have the chair and drills.

Quizplus · Accepted Answer

When a partner dies in a general partnership, the partnership is dissolved, and the assets of the partnership remain property of the entity. The surviving partner, Becca Franklin, has the right to continue the business and control the inventory. Suzanne's husband has no right to take possession of any of the partnership's assets.

Becca Franklin and Suzanne Peterson Formed an LLC as Co-Owners