Ch32 Creation and Operation of a Partnership

Question 1

Each partner has this to enter into binding contracts on behalf of the partnership.

Answer 1

Authority

Question 2

Unless otherwise stated, profits and losses of the partnership will be shared ______________.

Answer 2

Equally

Question 3

The partnership agreement must meet this many requirements of a valid contract.

Answer 3

Five

Question 4

In absence of other evidence, it should be held that a partnership existed.

Answer 4

Prima Facie Evidence

Question 5

Each partner must ___________ to the partnership for all business transactions.

Answer 5

Account

Question 6

The partner has no right to withdraw any part of the original investment without the consent of the other partners.

Answer 6

Concent

Question 7

This kind of damage can be done to the copartner by betraying their trust.

Answer 7

Irreparable

Question 8

. A partner has ___________ of the torts of another partner committed in the course of partnership business (instructor: ignorance is no excuse).

Answer 8

Liability

Question 9

If any partner __________ in this duty, the other partners have several legal remedies to redress the wrong.

Answer 9

Fails

Question 10

In this type of partnership each partner owns and can sell only a pro rata interest in the partnership as an entity.

Answer 10

Tenancy

Question 11

Unless otherwise stated; each partner has the duty to _________on behalf of the partnership.

Answer 11

Work

Question 12

In a case of a false impression of a partnership, the law will frequently hold that the apparent partners are _________ from denying that a partnership exists.

Answer 12

Estopped

Question 13

The partners have this type of liability on all partnership contractual liabilities unless the contract says otherwise.

Answer 13

Joint

Question 14

A __________ partner does not get full ownership on the death of the other owner.

Answer 14

Surviving

Question 15

This is the written partnership agreement.

Answer 15

Articles of Partnership

Question 16

Cengage Learning: On the face of it

Answer 16

Prima Facie

Question 17

Cengage Learning: Evidence sufficient on its face, if uncontradicted

Answer 17

Prima Facie Evidence

Question 18

Cengage Learning: Written partnership agreement

Answer 18

Articles of Partnership

Question 19

Cengage Learning: Ownership of partner in partnership property.

Answer 19

Tenancy in Partnership

Question 20

1. A partnership must be formed by a written agreement.

Answer 20

False

Question 21

2. If Juan and Sebastian want to form a partnership, they must draw up a written partnership agreement if the partnership is to be enforceable.

Answer 21

False

Question 22

3. All partnership decisions are made by majority vote.

Answer 22

False

Question 23

4. Each partner has the duty to inform the other partners about matters relating to the partnership.

Answer 23

True

Question 24

5. The Uniform Partnership Act requires that a partnership register a company name.

Answer 24

False

Question 25

6. A major breach of the partnership agreement may justify dissolution of the partnership.

Answer 25

True

Question 26

7. Articles of partnership hardly ever state how partners will share profits and losses.

Answer 26

False

Question 27

8. Felix and Art co-own a furniture store. Felix and Art jointly control the business and they share the net profits and losses derived from the store.

Answer 27

Situation a partnership exist between Felix and Art

Question 28

9. When evidence is proof of something in the absence of other evidence, it is said to be ________ evidence.

Answer 28

Prima Facie

Question 29

10. When the conduct of people who are not partners seems to mislead others into thinking they are partners, there is a partnership by ________.

Answer 29

Estoppel

Question 30

11. In a/n ________ in partnership, each partner owns and can sell only a pro rata interest in the partnership as an entity.

Answer 30

Tenancy

Question 31

12. Among the common duties that partners owe to each other include:

Answer 31

Duty to exercise loyalty and good faith.

Question 32

13. Bayer, a partner in the firm of Bayer and Black, without the consent of Black, used firm money in a speculative venture in her own name and realized a profit. Billingsley is the attorney who sets the venture up and files all the paperwork. Who would bear the loss if Bayer's venture failed?

Answer 32

Bayer