1. A partnership is considered a legal entity in each of the following ways exce

Question

1. A partnership is considered a legal entity in each of the following ways except?

a. A partnership can be named in a suit.

b. Partnership assets are arranged in a certain order to pay any outstanding debts.

c. A partnership can hold a title to a property.

d. Every partner is not considered an agent of the partnership.

e. Each partner has a fiduciary relationship with the others.

2. In which of the following situations could a partnership be considered a legal entity as opposed to a legal aggregate?

e. All of these situations require a partnership to be considered a legal entity.

e. Between two or more legal persons.

2. In which of the following situations could a partnership be considered a legal entity as opposed to a legal aggregate?

a. When the partnership debts eventually become the debts of the individual partners. b. When the partnership is being sued. c. When one partner dies. d. For taxation purposes.

e. All of these situations require a partnership to be considered a legal entity.

3.Which of the following is not a required element of the definition of a partnership? a. The partners would be co-owners. b. An association. c. To carry on a business for a profit. d. All of these are elements of the definition of a partnership.

e. Between two or more legal persons.

4. Which of the following is not a situation when a partner has a right to an accounting? a. Whenever the partnership agreement provides for an accounting b. Whenever any partner fails to disclose a profit, thus breaching her fiduciary duty c. Whenever circumstances render an accounting "just and reasonable" d. Whenever the copartners wrongfully exclude a partner from the partnership e. When a quarter report is issued

Explanation / Answer

1. Each and every partner is considered an agent as well as proncipal of the partnership. Hence, D is the correct option.

2. When a partnership is being sued, it is ued in the name of partnership only and not in the name of partners individually. Hence, B is the correct option.

3. A partnership need not to be in between two or more legal persons. It can be between natural persons or between natural persons and legal persons also. Hence, E is the correct option.

4. In the situation when a quarter report is issued, the partner doesn't have a right to accounting. Hence, E is the correct option.

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