As a general rule, a partner cannot ask for a formal accounting of the affairs of the partnership during its existence and before it is dissolved, except:

I. When he is rightfully excluded from the partnership business

II. When the right exists under the terms of any agreement

III. When he derived any profits without the consent of the other partners from any transaction connected with the formation, conduct, or liquidation of the partnership or from any use by him of its property.

IV. Whenever other circumstances render it just and reasonable

Group of answer choices

I, II, III and IV

II, III, and IV only

I, II, and III only

III and IV only

General partners shall have no right to perform the following acts without the written consent or ratification by all the limited partners, except:

Group of answer choices

Admit a person as a limited partner, unless the right to do so is given in the certificate.

Continue the business with partnership property on the death, retirement, insanity, civil interdiction or insolvency of a general partner, unless the right to do so is given in the certificate.

To have the partnership books kept at the principal place of business of the partnership, and at a reasonable hour to inspect and copy any of them.

Admit a person as a general partner.

Question 3

1pts

A decree by the court is necessary to dissolve a general partnership based on three of the following grounds. Which one will not require such decree but will cause the automatic dissolution of the partnership?

Group of answer choices

The business of the partnership can only be carried on at a loss.

A partner is civilly interdicted.

A partner is shown to be of unsound mind.

A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the business.

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Question 4

1pts

A, B, C and D were partners. A assigned his interest in the partnership to his son S. S now wanted to join in the management of the enterprise. B, C and D refused. Is the partnership necessarily dissolved?

Group of answer choices

The mere assignment did not dissolve the firm. This is so even if B, C and D did not allow S to participate in the firm's business conduct.

The partnership is dissolved because of the conveyance by A.

The conveyance of interest by A automatically dissolved the partnership.

The partnership is not dissolve provided B, C and D will allow S to join the management of the enterprise.

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Question 5

1pts

A, B, and C are partners. A dies. B knows this, but still he later transacts new business with X, a business not connected with winding up. This notice of dissolution was in the paper but X did not read the notice, and when X transacted with B, X thought all the time that the firm had not yet been dissolved.

Statement 1. If X had been a previous creditor, the partnership is liable.

Statement 2. If X had never extended credit before, the partnership is not liable.

Statement 3. The partnership is liable whether X was a previous creditor or not.

Group of answer choices

All statements are not true

Only the 2nd statement is true

Only the 3rd statement is true

Statements 1 and 2 are true

Only the 1st statement is true