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61. Refer to Fact Pattern 19-2. Which of the following is true regarding Vince's entitlement, if any, to share in profits of the business?a. Because he was not doing his share of the work, he was not entitled to any profits.b. He was entitled to 10% of the profits.c. He was entitled to 20% of the profits.d. He was entitled to 50% of the profits.ANSWER: dPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: - ANALYTICACCREDITING STANDARDS: DISC: - AICPA: BB-LegalTOPICS: 19-2 General PartnershipsKEYWORDS: Blooms: Analysis62. Refer to Fact Pattern 19-2. Is Maxine, XYZ Grooming, or Vince responsible for payment of the shampoo purchased
b. Since the winding-up process has begun, neither Maxine, Vince, nor XYZ Grooming isliable.63. Refer to Fact Pattern 19-2. Which of the following is true regarding liability on the lawsuit brought by the Corgi owner?The partnership is liable, and so are both Vince and Maxine if insufficient partnership funds exist to pay any judgment.Since the winding-up process has begun, neither Maxine, Vince, nor XYZ Grooming would be liable on any judgment obtained.64. Define a joint venture and list the elements necessary for a finding of a joint venture.
65. Explain requirements for formation of an S corporation.