Busisness Organizations: General Partnerships Flashcards
Which of the following statements about the form of a general partnership agreement is true?
It must be in writing if the partnership is to last for longer than one year
-Under the Statute of Frauds, an oral agreement to enter into a partnership is valid and if its duration for an indefinite period. However, if the partnership is to continue for a period exceeding 1 year, the Statute of Fraud requires the agreement to be written.
Under the Revised Partnership Act, which of the following have the right to inspect partnership books and records?
Inactive Partners
The RUPA states that the partnership must provide a partner with information “reasonable required for the proper exercise of the partners rights and duties”, including access to the partnership books and records.
-No distinction is made between active and inactive partners.
Which of the following is an advantage of forming an LLP instead of general partnership?
A personal liability shield attracts more partners, which usually leads to better capitalization of the partnership.
