Taxes will need to be paid on the profits individually and losses must be dealt

Taxes will need to be paid on the profits

This preview shows page 43 - 45 out of 48 pages.

the course of the business, the other may be held liable. Taxes will need to be paid on the profits individually and losses must be dealt with. Should significant business losses occur, although a remote problem, or should tort liability occur, a very real problem, each may be liable personally and beyond the small amount of capital put into the cookie business.AACSB: Reflective ThinkingBlooms: AnalyzeBlooms: ApplyDifficulty: HardLearning Objective: 13-02 List the elements required to form a general partnership and the statutory requirements for forming a limited partnership.Melvin - Chapter 13 #73Topic: Formation 74.(p. 344; 345; 349; 350; 353)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?
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75.(p. 350)Name the three specific events that are deemed events of dissociation by the Revised Uniform Partnership Act considered to be the most common. The RUPA lists ten different events resulting in dissociation. The majority of dissociations occur in three instances: (1) voluntary separation from the partnership when one partner simply notifies the other partners of their intention to leave the business relationship; (2) expulsion of a partner by unanimous vote of the other partners; and (3) a determination that the dissociated partner no longer can carry out necessary partnership duties, generally due to death, incapacity or the termination of the partners economic stake in the business as occurs in a bankruptcy.AACSB: AnalyticBlooms: UnderstandDifficulty: MediumLearning Objective: 13-07 Articulate the consequences of partner separation and dissolution.Melvin - Chapter 13 #75Topic: Dissociation under the RUPA76.
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