Adam and Eve are partners in a wedding catering business. Adam is responsible for the cake design
Question:
Adam and Eve are partners in a wedding catering business. Adam is responsible for the cake design and baking, while Eve handles the cake orders, supplies and accounting. The following are true except:
a. If Eve is skimming money from the business and the partnership's suppliers have not been paid, Adam is liable for payment, even from his personal assets.
b. Adam wants more control over the partnership, and tells Eve, I'm going to make all management decisions from here on out, and Eve agrees; Adam tells the employees not to follow Eve's direction; Eve has no recourse.
c. Eve went to a wedding convention, and she incurred substantial personal expenses. Eve is entitled to reimbursement from the partnership's business account.
d. Adam has cash flow problems; he missed last month's rent. But the wedding catering business is seasonal, and the partnership's monthly distributions have been light. Adam can request that the partnership distribute 66% of monthly net profits during the off season, to be adjusted to 34% during the more profitable busy season.
Introduction To Leadership Concepts And Practice
ISBN: 9781506330082
4th Edition
Authors: Peter G. Northouse