QUESTION 17

1. Sweet Selections, a general partnership, operates as a gift shop. Sweet Selections has ten partners. Jill and Amy each have a 25 percent interest in the partnership. All the other members have a 10 percent interest. Unless the partners otherwise agree, with respect to management decisions

   	a.	30 percent of the partners must agree.
   	b.	both Jill and Amy must agree.
   	c.	the senior partner decides.
   	d.	a majority of the partners must agree.

1 points

QUESTION 18

1. Quisa and Reilly are partners in Sport Bikes, which rents and sells bikes, bike accessories, and related gear. Quisa manages the business. Unless the partnership agreement states otherwise, Quisa is

   	a.	not entitled to compensation.
   	b.	entitled to compensation in proportion to her capital contribution.
   	c.	entitled to compensation in proportion to her effect on the business.
   	d.	entitled to compensation in proportion to her effort.

1 points

QUESTION 19

1. Rosalee is a general partner in Silver Dragon, a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosalee is

   	a.	only liable in proportion to the number of partners in the firm.
   	b.	not liable.
   	c.	only liable to the amount of her capital contribution.
   	d.	personally liable to the full extent.

1 points

QUESTION 20

1. Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.

   Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselles liability for partnership debts incurred before her admission is

   	a.	nothing.
   	b.	unlimited.
   	c.	limited to her capital contribution to the firm.
   	d.	limited to her personal assets.