Under the UPA, a tenancy in partnership has all the following characteristics ex
ID: 425371 • Letter: U
Question
Under the UPA, a tenancy in partnership has all the following characteristics except O a partner has an equal right with all other partners to possess and use specific partnership property for partnership purposes but not for that partners personal use. O partners' rights in partiership property are not subject to attachment for personal debts. O a deceased partner's interest in real property held by the partnership passes to the surviving partners O a partner is not co-owner of partnership property and has no interest in partnership property which can be transferred, either voluntarily or involuntarily QUESTION 2 Tina is a limited partner in Aon Enterprises, a limited partnership, while Mark is a general partner. Tina assumes management duties when Mark is recovering from heart surgery. Who has liability for partnership actions in this period? O Aon Enterprises only O Mark only O Tina only O Mark and Tina only QUESTION 3 Arian is a sole proprietor and owes a number of business creditors. The business creditors may o only take Arian's business assets o only take Arian's personal assets. o take both Arian's business and personal assets o not take any assets but only the profits of the businessExplanation / Answer
1. Under the UPA, a tenancy in partnership has all the following characteristics except
Ans: a partner is not co owner of partnership property and had no interest in partnership property which can be transferred, either voluntarily or involuntarily.
Explanation:
According to the characteristics of a tenancy in partnership under UPA, each partner has equal right to that of copartners to possess partnership property for partnership purposes, but no right to possess it for other purposes without copartner’s consent which includes personal use also. Partner’s rights in the partnership property are subject to attachment only on a claim against the partnership and not subject to attachment for partner’s personal debts. Upon the death of a partner, the partner’s rights in the specific partnership property transfers to the surviving partners. The fourth option, ‘a partner is not co owner of partnership property and had no interest in partnership property which can be transferred, either voluntarily or involuntarily’ comes under RUPA.
2. Ans: Mark and Tina only
Explanation:
A general partner in a limited partnership has unlimited liability and hence Mark would be liable though he is not managing the business due to heart surgery. A limited partner has limited liability unless the partner takes part in control of the business and the surname of the limited partner does not appear in the partnership name. Here Tina is controlling the business and hence Tina has liability even though she is a limited partner. Hence both Mark and Tina would have the liability.
3. And: Take both Arian’s business and personal assets
Explanation:
Sole proprietorship involves unlimited personal liability and the owner is personally liable for the debts in business. The business creditors can take both personal and business assets. Hence the business creditors may take both business and personal assets of Arian.
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