Question 1

In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a:
A) corporation.
B) limited liability partnership.
C) limited partnership.
D) general partnership.

Accepted Answer

The easiest form of business to form is a general partnership, as it requires no formal legal documentation or registration. The partners can simply agree to work together and share profits and losses.

Question 2

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 3

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 4

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:
A) Luke would be entitled to payment from the partnership for the extra 20-25 hours per week he spends on partnership business unless a partnership agreement denies this right.
B) the partners cannot agree to deny extra payment for extra work by a partner.
C) unless the partners have otherwise agreed, Luke is not entitled to payment for his work for the partnership, even if it is disproportionate to his partner's work.
D) Luke would be entitled to payment from the partnership only if the amount of time and effort he expends on partnership business is grossly disproportionate to that spent by his partner.

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 5

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 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

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 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:
A) limited liability limited partnership.
B) limited partnership.
C) limited liability company.
D) business trust.

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.

Question 9

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:
A) he is a sole proprietor of the business.
B) the business is a corporation and he is a shareholder.
C) he committed the tort.
D) he is a general partner of the business.

Accepted Answer

If the business is a corporation and Jess is a shareholder, then his personal liability is limited to the amount of money he has invested in the business. The corporation itself is a separate legal entity and can be sued for any damages related to the tort. The other choices (A, C, and D) all involve some level of personal liability for Jess in the event of a tort, either because he is the sole proprietor or committed the tort himself or is a general partner in a partnership.

Question 10

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."...

Quiz 30: Formation and Internal Relations of General Partnerships

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

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.

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

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:

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.

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.

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:

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:

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.