Partnership - MANAGEMENT AND OPERATION OF A GENERAL PARTNERSHIP Flashcards Preview

CALIFORNIA AGENCY AND PARTNERSHIP > Partnership - MANAGEMENT AND OPERATION OF A GENERAL PARTNERSHIP > Flashcards

Flashcards in Partnership - MANAGEMENT AND OPERATION OF A GENERAL PARTNERSHIP Deck (9)
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1

In absence of an agreement all partners have equal rights in what?

the management of the business and equal votes

2

How many votes are given to each partner (in absence of an agreement)

one partner, one vote

3

What is the required voting for decisions regarding matters within the ordinary course of the partnership business?

a majority vote of the partners

4

What is the required voting for decisions regarding matters outside of the ordinary course of the partnership business?

Matters outside of the ordinary course of business require the consent of all partners

5

A, B, and C contribute 60%, 30%, and 10% of the capital respectively to the partnership. They also agree to split profits and losses 60-30-10. On an ordinary business matter, A votes “against” while B and C vote “for.” Who prevails?

B and C prevail because they are a majority.

6

A, B, and C contribute 60%, 30%, and 10% of the capital respectively to the partnership. They also agree to split profits and losses 60-30-10. What if the matter was outside of the ordinary course of business (e.g., amending the partnership agreement)?

A would prevail because unanimity was required.

7

Does a partner have a right to salary or other compensation?

Unless otherwise agreed, partners get no compensation

8

What is the one exception that allows a partner to be compensated?

The right to reasonable compensation for services rendered in winding up the partnership business.

9

A and B are partners. A works 96 hours a week. B sleeps all day. Does A have a right to a salary?

No. Partners do not have a right to compensation