James and Reilly were arguing over who was the senior partner and who was the junior partner, even though they started the business at the same time. If you were brought on board as their business advisor, you would explain to them that all partnerships have at least one general partner (known as the senior partner) and one limited partner (known as the junior partner).

Question

Quizplus · Accepted Answer

According to the Uniform Partnership Act adopted in every state except Louisiana, partners have the right to (1) common ownership; (2) shared profits and losses; and (3) the right to participate in managing the operations of the business. In some cases, partners may have differing skills and skill levels (or level of experience) of the other partners, but as partners they are on equal footing. A good partnership agreement will spell out the details of the partnership. Further, partnerships can be (1) general partnerships or (2) limited partnerships, but these variations do not hold the senior/junior designation.

James and Reilly Were Arguing Over Who Was the Senior