STU14 Flashcards
1
Q
In the absence of a specific provision in a general partnership agreement, partnership losses will be allocated?
A
Without an agreement to the contrary, the RUPA requires that each partner contribute toward the losses of the partnership according to his or her share in the profits. This rule applies only among the partners. All partners remain fully liable to third parties.
2
Q
How is a limited partner’s capital contribution to the limited partnership classified?
A
The limited partner’s interest is an investment in the entity as a whole. The interest is personal property. It constitutes an intangible because the limited partner has no right to specific partnership property.
