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14 Cards in this Set
- Front
- Back
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Agency concepts and Partnership laws |
-Partnerships are governed both by common law and by statutory laws -Each partner is deemed to be an agent and fiduciary of the other -Imputation of liability |
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Uniform Partnership Act |
In absence of a partnership agreement, this act govern the partnership |
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Partnership |
Created when two or more persons agree to carry on business for profit as co-owners with equal rights to share and manage profits. Is a separate legal entity |
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Partnership Requirements |
-sharing of profit or loss -Joint ownership of the business -Equal right to be involved in the management of the business |
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Partnership Tax treatment |
Is a pass through tax entity |
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Partnership Agreement |
Can be written or oral |
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Partnership Duration |
-For a set term -At will |
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Partnership by Estoppel |
Occurs when a person who is not a partner, holds out to third parties who relies on that person. The non-partner is considered an agent whose acts are binding on the partnership |
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Rights of Partners |
-In the absences of an agreement state statues govern the partner rights. -Each have equal one votes. -Equal profits, losses -Inspection of the books -Accounting -Property |
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Duties and Liabilities of Partners |
If partner is sued for partnership debt, have the right to have the other partners sued with them |
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Dissociation of a partner |
-Partner's interest can be purchased by the partnership -Terminates all of their decision making |
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Termination of a partner |
Dissolution -By agreement -By law -Dissolves the partnership Distribution of assets 1. Once terminated, partnership must complete all transactions 2. collect all assets 3. discharge liabilities 4. Provide accounting |
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Limited Liability Partnerships |
-Has pass through tax advantage -Limits personal liability of the partners -Name must contain LLP |
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Family LLP |
LLP where almost everyone is related |
