TRUE FALSE 3. Sarah and Sreeram are partners. They do not have a partnership agr
ID: 2413295 • Letter: T
Question
TRUE FALSE 3. Sarah and Sreeram are partners. They do not have a partnership agreement. Sarah invested 75% of the capital in their business. Sreeram correctly believes Sarah must pay 75% of any losses. TRUE FALSE 4. Camille and Pat form a partnership to sell gourmet cupcakes. If Camille signs a contract to purchase ingredients from an over-priced merchant, Pat is not liable on the contract because Camille is not an agent of the partnership. TRUE FALSE 5. Valerie Victim is injured after receiving poor periodontal treatment from Peter's and Paul's Periodontal Emporium. In her lawsuit she names Peter, Paul and the Periodontal Emporium as defendants. If she wins, she can collect from any of the three defendants. TRUE FALSE in Snort Rikes, which rents and sells bikes, bikeExplanation / Answer
3. In the absence of a partnership agreement, the profits and losses are to be borne equally by the partners. Therefore, even though Sarah contributed 70% capital, both Sarah and Sreeram are equally liable for losses and Sarah is not liable to the extent of 75% of losses.
The given statement is FALSE.
4. Camille and Pat formed a partnership. That itself means the partners are going to have and have unlimited liability. Therefore Pat is liable to the contract entered by Camille with the over-priced merchant.
The givegiven statement is FALSE.
5. In a partnership partners have unlimited liability. The liability of the partnership can be even sued on partners personal property if the partnership doesn't have enough assets to repay. In this case, Valarie Victim has sued against partners and the partnership. If she wins the case, she can recover the money from either of Peter, Paul or Periodontal Emporium.
The given stateis TRUE.
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