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74. You have been invited to become a member of a partnership. What are some of the considerations you need
to assess in making a decision to become a general or limited partner?
75. Name the three specific events that are deemed events of dissociation by the Revised Uniform Partnership
Act considered to be the most common. 76. You have just graduated and you want to start your own business. You have a degree in horticulture so you have chosen to open a florist shop and plant nursery. What type of business entity will you choose and explain its benefits and detriments in detail. 77. Charlie and Mia have started selling t-shirts with iron on decals and lettering. They have no formal written agreement and simply decided to split all profits equally. Each has contributed $1,000 to the enterprise and since Mia will be doing all of the work, Charlie agrees that he will be responsible for 75% of any losses. Charliedoes call in to make day to day decisions but Mia purchases the shirts, decals and lettering, operates the press and mans the store. Charlie stays home and smokes cigars and drinks scotch. Alan purchases one of their shirts and after wearing it all day discovers that the dye has run and his upper body is now blue. After bathing numerous times he finds that the blue dye will not wash out. Alan sues and is awarded $100,000 in damages. Charlie claims that there was no real business entity formed and that he should not be liable. How should the court decide? 78. Name and discuss the fiduciary duties owed by general partners to the partnership as set out in the Revised
Uniform Partnership Act.
79. May a limited partner ever be held liable for partnership liabilities beyond the amount of their partnership
contribution? Explain. 80. Bud and Lou own and operate a bakery. They each perform all of the functions in the bakery from baking to cleaning up. They make decisions jointly and hold themselves out to the public as business equals. When starting the business, Bud contributed $60,000 and Lou $40,000 to capitalize the business. They have a written agreement stating that they will share profits equally, however; responsibility for losses will be allocated at 60%to Lou and 40% to Bud. If Helen slips and falls in the shop and gets a judgment for $100,000, how may Helen proceed?
Chapter 13 Choice of Business Entity, Sole Proprietorships, and Partnerships Key1.(p. 339)Business entities are sometimes referred to as business _______. OrganizationsAACSB: AnalyticBlooms: RememberDifficulty: EasyLearning Objective: 13-01 Articulate the factors that business owners should consider when selecting a business entity.Melvin - Chapter 13 #1Topic: Introduction2.(p. 346)The duty of a partner to act in the best interests of the partnership is called a ________ duty. FiduciaryAACSB: AnalyticBlooms: UnderstandDifficulty: MediumLearning Objective: 13-05 Distinguish between personal liability for general partners and limited partners.