Final- Fill in blank

Question 1

Name the 3 types of entity that can form a partnership

Answer 1

1. Individuals
2. Partnership
3. Corporation

Question 2

Name the 6 items that can be included in articles of partnership.

Answer 2

1. Name of the firm
2. Type of business
3. Term of the partnership
4. Statement as to sharing of profits and losses by partners
5. Statement how partnership continues after death
6. Statement as to manage the salaries and duties

Question 3

What are the 5 rights and duties of each partner to partnership?

Answer 3

1. Loyalty and good faith
2. Duty of care
3. Reasonable Care
4. Duty to Inform
5. Duty to account

Question 4

What are the 4 ways in which a partnership can be dissolved?

Answer 4

1. Non-wrongful dissolution
2. Wrongful dissolution
3. Automatic dissolution
4. Dissolution by court order

Question 5

Name the 5 ways in which partnerships are automatically dissolved.

Answer 5

1. Death of a partner
2. Bankruptcy
3. Illegal conduct
4. Loss of professional license
5. Expulsion

Question 6

What is the guy called who winds up a partnership?

Answer 6

Receiver

Question 7

Name the 6 ways a partnership can be dissolved by court order

Answer 7

1.Insanity
2. Impracticability
3. Lack of success
4. Permanent Disability
5. Willful breach
6. Equitable circumstances

Question 8

Name how the assets are distributed when a partnership is winding up. (4)

Answer 8

1. Outside creditors
2. Debts owed to a partner
3. Return of each partners capital contribution
4. Profits divided by the partners