Post on 26-Dec-2015
The Partnership The Partnership Section 27.2Section 27.2
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
What You’ll Learn
How to define general partnership (p. 588)How to define general partnership (p. 588)
How to identify the ways that a partnership How to identify the ways that a partnership can be created (p. 588)can be created (p. 588)
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
What You’ll Learn
How to identify partnership rights in How to identify partnership rights in relation to property (p. 593)relation to property (p. 593)
How to explain the effects of the How to explain the effects of the dissolution of a partnership (p. 597)dissolution of a partnership (p. 597)
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Why It’s Important
Understanding the nature of a partnership Understanding the nature of a partnership will help you decide when to form that type of will help you decide when to form that type of business association.business association.
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Legal Terms
general partnership (p. 588)general partnership (p. 588)articles of partnership (p. 588)articles of partnership (p. 588)partnership by proof of existence (p. 590)partnership by proof of existence (p. 590)partnership by estoppel (p. 591)partnership by estoppel (p. 591)tenancy in partnership (p. 593)tenancy in partnership (p. 593)
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Legal Terms
joint liability (p. 596)joint liability (p. 596)dissolution (p. 597)dissolution (p. 597)registered limited liability partnership registered limited liability partnership (RLLP)(RLLP) (p. 598)(p. 598)limited partnership (p. 599)limited partnership (p. 599)
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
The Nature of Partnership Forming a General PartnershipTypes of PartnersPartnership Property Property Rights of PartnersDuties of the PartnersLiability of the Partners
Section OutlineSection Outline
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Dissolving a Partnership Effects of DissolutionDistribution of Assets
Section OutlineSection Outline
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
The Revised Uniform Partnership Act Registered Limited Liability Partnerships Limited Partnerships
Section OutlineSection Outline
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Pre-Learning Question Pre-Learning Question
What is a partnership?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partnership law is largely found in the Partnership law is largely found in the Uniform Partnership Act (UPA).Uniform Partnership Act (UPA).
The UPA defines partnership as “an The UPA defines partnership as “an association of two or more persons to association of two or more persons to carry on a business for profit.”carry on a business for profit.”
The Nature of Partnership The Nature of Partnership
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
more capital and credit availablemore capital and credit availableburden of work is sharedburden of work is sharedresponsibility for losses shared responsibility for losses shared
Advantages of Partnerships Advantages of Partnerships
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
partners share in the liabilitiespartners share in the liabilitieseach partner is responsible for the each partner is responsible for the others’ actionsothers’ actionsmust share profitsmust share profitsdisagreements among partnersdisagreements among partnersdeath of a partner dissolves the death of a partner dissolves the partnership partnership
Disadvantages of Partnerships Disadvantages of Partnerships
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
When two or more competent parties When two or more competent parties combine their money, labor, and skills combine their money, labor, and skills for the purpose of carrying on a lawful for the purpose of carrying on a lawful business, they create a business, they create a general general partnershippartnership. .
Forming a General Partnership Forming a General Partnership
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
General partnerships can be formed in General partnerships can be formed in one of three ways: one of three ways:
Forming a General Partnership Forming a General Partnership
1.1. by agreementby agreement2.2. by proof of existenceby proof of existence3.3. by estoppelby estoppel
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
27.227.2
Partnership FormationPartnership Formation
Partnership by
contract
Partnership by
proof of
existence Partnership by
estoppel
Express agreement drawn up by partners
Articles of partnership
Individuals form partnership because of their
method of doing business
Sharing of profits is prima facie evidence
Third party led to believe a partnership exists
No true partnership created
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Forming a general partnership by Forming a general partnership by agreement requires the valid assent of agreement requires the valid assent of all parties. Such an agreement is all parties. Such an agreement is usually express and may be written or usually express and may be written or oral.oral.
By Agreement By Agreement
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Under the Statue of Frauds, if a Under the Statue of Frauds, if a partnership is to last more than a year partnership is to last more than a year or if the partnership is formed to sell, or if the partnership is formed to sell, buy, or lease real property, it must be buy, or lease real property, it must be evidenced in writing.evidenced in writing.
By Agreement By Agreement
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
The partnership agreement is known The partnership agreement is known as the as the articles of partnershiparticles of partnership, or as , or as the articles of copartnership.the articles of copartnership.
By Agreement By Agreement
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
parties to the agreementparties to the agreementspecific nature, scope, and limits of specific nature, scope, and limits of the businessthe businessplanned duration of the businessplanned duration of the business
Important Points Covered Important Points Covered in an Agreement in an Agreement
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
amount of each partner’s original amount of each partner’s original investment and procedure for future investment and procedure for future investmentsinvestmentsprovisions regarding salaries, provisions regarding salaries, withdrawal of funds, and the division withdrawal of funds, and the division of profitsof profits
Important Points Covered Important Points Covered in an Agreement in an Agreement
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
terms under which a partner may terms under which a partner may withdraw from the partnershipwithdraw from the partnership
Important Points Covered Important Points Covered in an Agreement in an Agreement
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Sometimes a partnership can be Sometimes a partnership can be formed because of the way that two or formed because of the way that two or more people conduct their business more people conduct their business together.together.
By Proof of Existence By Proof of Existence
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Such a partnership, which forms Such a partnership, which forms regardless of the label given to the regardless of the label given to the enterprise or the intent of the parties enterprise or the intent of the parties involved, is termed a involved, is termed a partnership by partnership by proof of existence.proof of existence.
By Proof of Existence By Proof of Existence
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
If someone does or says something If someone does or says something that leads a third party to believe that that leads a third party to believe that a partnership exists, then a court may a partnership exists, then a court may treat the arrangement as a treat the arrangement as a partnership by estoppelpartnership by estoppel..
By Estoppel By Estoppel
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
This type of partnership is not a real This type of partnership is not a real partnership. It is a way for the court to partnership. It is a way for the court to prevent injustice because someone prevent injustice because someone has relied on the words or actions of has relied on the words or actions of another party and has acted another party and has acted accordingly.accordingly.
By Estoppel By Estoppel
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
There are five types of partners: There are five types of partners:
Types of Partners Types of Partners
1.1. generalgeneral2.2. secretsecret3.3. silentsilent4.4. dormantdormant5.5. limitedlimited
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Each of these partners is a co-owner Each of these partners is a co-owner of the business and has some liability of the business and has some liability for the debts of the firm.for the debts of the firm.
Types of Partners Types of Partners
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
27.227.2
Types of Partners Types of Partners
Type of Partner Participation in the Business
Relationship to the Public
Degree of Liability
General Active Known Unlimited
Secret Active Unknown Unlimited
Silent Not active Known Unlimited
Dormant Not active Unknown Unlimited
Limited Not active Known Limited
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
It is important to distinguish between It is important to distinguish between property that belongs to the property that belongs to the partnership and property that belongs partnership and property that belongs to individual partners.to individual partners.
Partnership PropertyPartnership Property
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
is property contributed directly to is property contributed directly to the partnership when the the partnership when the partnership is createdpartnership is createdis property that is bought with is property that is bought with partnership fundspartnership funds
Partnership PropertyPartnership Property
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
In addition, the court may ask certain In addition, the court may ask certain questions to determine whether or not questions to determine whether or not certain property belongs to the certain property belongs to the partnership.partnership.
Partnership PropertyPartnership Property
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Certain rights arise regarding property Certain rights arise regarding property that belongs to the partnership. These that belongs to the partnership. These include include
Property Rights of the Partners Property Rights of the Partners
the right to use the propertythe right to use the propertythe right to manage the firmthe right to manage the firmthe right to share in the profits the right to share in the profits
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners are co-owners of all the real Partners are co-owners of all the real and personal property included in the and personal property included in the partnership. partnership.
This co-ownership is called This co-ownership is called tenancy tenancy in partnershipin partnership by the UPA. by the UPA.
Right to Use Property Right to Use Property
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
As a result, the partners can use the As a result, the partners can use the property for partnership business; property for partnership business; however, there are limitations. however, there are limitations.
For example, a partner cannot, on his For example, a partner cannot, on his or her own, transfer ownership of the or her own, transfer ownership of the property.property.
Right to Use Property Right to Use Property
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Unless a partner’s rights are limited in Unless a partner’s rights are limited in the partnership agreement, each the partnership agreement, each partner has an equal voice in partner has an equal voice in managing the partnership’s business.managing the partnership’s business.
Right to Manage the Firm Right to Manage the Firm
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Unless there is an agreement to the Unless there is an agreement to the contrary, partners share equally in the contrary, partners share equally in the profits, regardless of their initial capital profits, regardless of their initial capital contribution or the time devoted by contribution or the time devoted by each partner to the business.each partner to the business.
Right to Share in the Profits Right to Share in the Profits
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners must trust one another. Partners must trust one another.
Each partner is an agent of the other Each partner is an agent of the other partner and has duties comparable to partner and has duties comparable to those of an agent.those of an agent.
Duties to the Partners Duties to the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
1.1. To always act in good faith and in To always act in good faith and in the best interests of the firm.the best interests of the firm.
Duties to the Partners Duties to the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
2.2. To always use their best skill and To always use their best skill and judgment in looking after the firm’s judgment in looking after the firm’s affairs.affairs.
Duties to the Partners Duties to the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
3.3. To be loyal to the firm and put the To be loyal to the firm and put the firm’s interests first.firm’s interests first.
Duties to the Partners Duties to the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners have unlimited liability for all Partners have unlimited liability for all of the debts of the partnership of the debts of the partnership incurred while they are partners, even incurred while they are partners, even to the extent of their personal assets.to the extent of their personal assets.
Liability of the Partners Liability of the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners are liable to other Partners are liable to other members of the firm for their share members of the firm for their share of the firm’s debts.of the firm’s debts.Partners share losses in the same Partners share losses in the same proportion that they share profits.proportion that they share profits.
Liability of the Partners Liability of the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners are jointly liable with their Partners are jointly liable with their partners on contracts entered into by partners on contracts entered into by any member of the firm acting within any member of the firm acting within the actual or apparent scope of the the actual or apparent scope of the firm’s business.firm’s business.
Liability of the Partners Liability of the Partners
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Joint liabilityJoint liability means that in the event means that in the event of a lawsuit, all the partners must be of a lawsuit, all the partners must be sued together. Partners are jointly and sued together. Partners are jointly and severally (separately) liable for torts severally (separately) liable for torts committed within the scope of the committed within the scope of the firm’s business.firm’s business.
Liability of the Partners Liability of the Partners
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Pre-Learning Question Pre-Learning Question
How do partnerships come to an end?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
A A dissolutiondissolution is a legal detachment. is a legal detachment. The dissolution of a partnership is a The dissolution of a partnership is a change in the relationship of the change in the relationship of the partners that occurs when any partner partners that occurs when any partner stops being associated with the stops being associated with the business.business.
Dissolving a Partnership Dissolving a Partnership
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Dissolution does not necessarily bring Dissolution does not necessarily bring the business to an end. the business to an end.
Other partners may want to continue Other partners may want to continue in business together.in business together.
Effects of Dissolution Effects of Dissolution
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
If so, If so,
Effects of Dissolution Effects of Dissolution
new financial arrangements need to new financial arrangements need to be made.be made.a new agreement must be drawn a new agreement must be drawn up.up.
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
public notice is usually given to public notice is usually given to relieve retiring partners from liability relieve retiring partners from liability for any new debts.for any new debts.
Effects of Dissolution Effects of Dissolution
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Upon dissolution, an accounting of the Upon dissolution, an accounting of the firm’s financial affairs is necessary to firm’s financial affairs is necessary to determine how the firm’s assets will determine how the firm’s assets will be distributed or divided. be distributed or divided.
Distribution of Assets Distribution of Assets
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Liabilities are paid in this order.Liabilities are paid in this order.
Distribution of Assets Distribution of Assets
1.1. Money owed to creditors other than Money owed to creditors other than partnerspartners
2.2. Money lent by partners to the firmMoney lent by partners to the firm
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
3.3. The original money paid into the The original money paid into the partnership by each partnerpartnership by each partner
4.4. The surplus, if any, owed to the The surplus, if any, owed to the partnerspartners
Distribution of Assets Distribution of Assets
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
If the business is insolvent:If the business is insolvent:
Distribution of Assets Distribution of Assets
Assets are sold to pay the creditors.Assets are sold to pay the creditors.Partners are individually liable for Partners are individually liable for any unpaid balance that the sale of any unpaid balance that the sale of the assets will not cover.the assets will not cover.
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
When Jess and Joe’s Café closed, they had $38,000 and owed $25,000 to creditors. Neither Jess nor Joe had any outstanding loans to the business, but each had paid $5,000 into the business to start it.
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Will Jess and Joe get their money back? Will there be any additional money leftover?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
ANSWERANSWER
Yes, Jess and Joe will get their money back. There will $3,000 leftover. $38,000 – 25,000 = 13,000 –10,000 = $3,000.
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Pre-Learning Question Pre-Learning Question
What is the Revised Uniform Partnership Act?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Since the UPA was written in 1914, it Since the UPA was written in 1914, it has undergone extensive revision. has undergone extensive revision. This new variation of the act is This new variation of the act is referred to as the Revised Uniform referred to as the Revised Uniform Partnership Act (RUPA).Partnership Act (RUPA).
The Revised The Revised Uniform Partnership Act Uniform Partnership Act
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Pre-Learning Question Pre-Learning Question
What is a registered limited liability partnership?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
A A registered limited liability registered limited liability partnership (RLLP) partnership (RLLP) is a new type of is a new type of partnership designed to eliminate a partnership designed to eliminate a major disadvantage of the general major disadvantage of the general partnership—joint and several liability.partnership—joint and several liability.
Registered Limited Registered Limited Liability Partnerships Liability Partnerships
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Partners of an RLLP can escape joint Partners of an RLLP can escape joint and several liability for the torts, and several liability for the torts, wrongful acts, negligence, or wrongful acts, negligence, or misconduct of other partners by misconduct of other partners by registering with the appropriate state registering with the appropriate state office.office.
Registered Limited Registered Limited Liability Partnerships Liability Partnerships
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Pre-Learning Question Pre-Learning Question
What is a limited partnership?
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
According to RUPA, a According to RUPA, a limited limited partnershippartnership is “a partnership formed is “a partnership formed by two or more persons. . . having one by two or more persons. . . having one or more general partners and one or or more general partners and one or more limited partners.”more limited partners.”
Limited Partnership Limited Partnership
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Limited partnerships are often used in Limited partnerships are often used in real estate ventures and tax shelter real estate ventures and tax shelter investments.investments.
Limited Partnership Limited Partnership
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
1. What is a general partnership?
Section 27.2 Assessment
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
When two or more competent parties combine their money, labor, and skills for the purpose of carrying on a lawful business.
Section 27.2 Assessment
Answer
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
2. How can a partnership be created?
Section 27.2 Assessment
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
By agreement, by proof of existence, and by estoppel.
Section 27.2 Assessment
Answer
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
3. What are the partner’s rights in relation to property?
Section 27.2 Assessment
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
Include the right to use partnership property, the right to manage the firm, and the right to share profits.
Section 27.2 Assessment
Answer
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
4. What are the effects of the dissolution of a partnership?
Section 27.2 Assessment
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
Dissolution need not end a partnership. Other partners may wish to continue the business.
Section 27.2 Assessment
Answer
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
New financial arrangements must be made in regard to the new firm. A new agreement must be drawn up regarding the conduct of the new firm.
Section 27.2 Assessment
Answer
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Reviewing What You Learned
Public notice must usually be given in order to relieve the retiring partners from liability for any new debts created by the new firm.
Section 27.2 Assessment
Answer
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Section 27.2 Assessment
Critical Thinking ActivityLimited Liability Partnership Why did some state legislatures decide to create registered limited liability partnerships?
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Section 27.2 Assessment
Critical Thinking Activity AnswerLimited Liability Partnership To eliminate the problems associated with joint and several liability.
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The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Section 27.2 Assessment
Legal Skills in ActionPartnership Liability Clay, who is a general partner in Harrington Enterprises, believes he will not be liable for a tort committed by Ian, another partner in the firm.
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Section 27.2 Assessment
Legal Skills in ActionPartnership Liability Write a letter to Clay explaining whether he will be liable for Ian’s tort.
Understanding Business and Personal Law
The Partnership The Partnership Section 27.2Section 27.2
Sole Proprietorship and Partnership
Section 27.2 Assessment
Legal Skills in Action AnswerPartnership Liability Letters will vary but should include, that Clay needs to be told that because he and Ian are partners, they are jointly and severally (separately) liable for torts committed by each other within the scope of the firm’s business.
The Partnership The Partnership End of Section 27.2End of Section 27.2