The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Question
Chapter 16, Problem 3BCP
Summary Introduction
Case summary:Person PG and person BL were in a relationship. During the relationship they acquired joint ownership over two properties, an electronic service Centre and an apartment. The deed of apartment was in name of BL, but none of them paid the down payment. Both the parties mutually agreed to share rights over the property,
To find: Partnership between person PG and person BL,
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Students have asked these similar questions
A, B and C were in general partnership business. Because of wrong decision taken by Mr.C the business got losses, which even the business assets cannot cover those liabilities and all of the partners will be subjected for unlimited liabilities. Who will be liable for the business debts and has to use personal property to pay for the losses.
Select one:
a.
Partner B
b.
Partner C
c.
Partner A
d.
All the partners
To Partner or Not to Partner
John Willis, who is 27 and single, had just completed his fifth year of employment as a carpenter for a very small homebuilder. His boss, the sole owner of the company, is Tyrone Young. A few days ago, Tyrone asked John if he would like to become a partner, which he could do by contributing $70,000. In turn, John would receive 40 percent of all prof- its earned by the business. John had saved $30,000 and could borrow the balance from his grandmother at a low-interest rate, but he would have to pay her back within 15 years.
John was undecided about becoming a partner. He liked the idea but he also knew there were risks and concerns. He decided to talk to Tyrone at lunch. Here is how the conversation went.
John: I've been giving your offer a lot of thought, Tyrone. It's a tough decision and I don't want to make the wrong one. So I'd like to chat with you about some of the problems involved in running a business.
Tyrone: Sure. I struggled with these issues…
Mr. Ahmed, the general partner of a big furniture store in Muscat is going to contribute a bigger share of money to settle the partnership's liabilities to its creditors. Why Ahmed is going to do so?
A.
General partners have a distinct legal personality
B.
None of the choices are correct
C.
General partners will contribute more because they have more money
D.
General partners have unlimited liability
Chapter 16 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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Similar questions
- 45) What is a disadvantage of partnerships over sole proprietorships? A. In partnerships, profits have to be shared, whereas in sole proprietorships all profits belong exclusively to the owner. B. Unlike sole proprietorships, partnerships do not face any regulatory controls that affect their activities. C. In partnerships, all owners have unlimited liability, whereas in sole proprietorships they have limited liability. D. Unlike a sole proprietorship, a partnership is terminated when a partner dies or withdraws. E. In sole proprietorships, the owners have access to more funds than in partnerships.arrow_forwardWhich of the following could not become a partner in a general partnership? Why? Jose, age 23, a citizen of Mexico The XYZ general partnership The JT Corporation Maria, age 16 All of the above could become partnersarrow_forwardLily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business? A. None of the above B. Avoidance of personal liability C. Possession of a partner D. Little capitalarrow_forward
- Partnership Formation. Daniel is the owner of achain of shoe stores. He hires Rubya to be the manager of anew store, which is to open in Grand Rapids, Michigan. Daniel, by written contract, agrees to pay Rubya a monthly salaryand 20 percent of the profits. Without Daniel’s knowledge,Rubya represents himself to Classen as Daniel’s partner andshows Classen the agreement to share profits. Classen extendscredit to Rubya. Rubya defaults. Discuss whether Classen canhold Daniel liable as a partner. (See Partnerships.)arrow_forwardImagine Ali, an Omani citizen, and Sara, a Canadian Citizen, decide to start a Limited Liability Company (LLC) together . Describe in detail the steps to be taken by Ali and Sara to establish an LLC . Is there any limitations for Sara (as a non-Omani investor) to start a business in Oman? *arrow_forward
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