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Stanton and Francesca Have Started a General Partnership

Question 53

Multiple Choice

Stanton and Francesca have started a general partnership.Stanton has contributed 95 percent of the start-up capital and has the business experience and contacts,while Francesca's primary contribution is the labor necessary to operate the business.Management decisions are jointly made.At the end of the year,the business has shown a $100,000 profit.Stanton and Francesca have no formal written partnership agreement.


A) Stanton is entitled to $95,000, and Francesca gets $5,000.
B) The RUPA mandates that each get $50,000.
C) The RUPA mandates that Francesca be paid a fair amount for her labor contribution and the remaining profits be split with 95 percent going to Stanton and 5 percent going to Francesca.
D) The RUPA mandates that Francesca be paid a fair amount for her labor contribution and the remaining profits be split equally between Stanton and Francesca.

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