Peggy, Crystal and Dean want to enter into a partnership, however, Dean cannot contribute an equal amount of capital or manpower to the partnership. Therefore, they want to ensure that Dean will only be able to get a portion of the profits equal to both his capital and manpower contributions. Which of the following statements would be accurate statement?
A) The partners should create a partnership agreement to override the default rule that partners have an equal right to profits.
B) The default rule will always trump a partnership agreement, therefore, they should not enter into a partnership with Dean if they do not want to split the profits with him equally.
C) Each time profits are divided the court will intervene and determine what is a fair and just distribution.
D) Peggy and Crystal should just hide a portion of the profits from Dean.
Correct Answer:
Verified
Q19: General partners' personal assets are at risk
Q20: Vladamir, Alexander and Tchaicovsky are each partners
Q21: Siegfried and Roy enter into a white
Q22: Idi and Amin are partners in a
Q23: Harry and Ron are partners in a
Q24: A responsibility to act in the best
Q25: All of the following are fiduciary duties
Q26: In the case, Meinhard v. Salmon, the
Q27: Rocky and Paulie enter into a professional
Q29: When a partnership has reached its agreed-upon
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents