A Partnership Interest

question 63

Multiple Choice

A partnership interest:

• A) is personal property that may be assigned without dissolving the limited partnership.
• B) may be assigned to a person who then becomes a partner.
• C) may not be assigned without dissolving the limited partnership.
• D) may not be assigned unless this right is specifically provided for in the partnership agreement.

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Definitions:

Mutual Agency

A principle in partnership where each partner is both an agent and a principal to the partnership, authorized to bind the partnership in contracts and agreements.

Partnership Business

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Ease of Formation

Refers to the simplicity and low barriers to legally establishing and starting a new business entity.

Governmental Regulations

Rules established by government bodies intended to control and govern the conduct of businesses and individuals to ensure compliance with policies and standards.