If Two Sisters, Simone and Claire, Were Setting Up a Partnership

question 52

Multiple Choice

If two sisters, Simone and Claire, were setting up a partnership to provide French lessons, which of the following arrangements would require a change to the default rules under partnership law?

• A) Simone and Claire each want to receive 50 percent of the profits from the business.
• B) Simone and Claire would each contribute the same amount to the partnership initially.
• C) Either sister can make management decisions for the partnership business independent of the other.
• D) If one of the sisters had to pay out 100 percent of a business obligation, the other would reimburse her for 50 percent of the cost.
• E) The sisters plan to buy a car which will be used only in the partnership business.

---

Definitions:

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Union Shop Contracts

Agreements requiring employees to join a union within a certain period after being hired.

Right-To-Work State

A state that prohibits agreements between labor unions and employers that make membership, payment of union dues, or fees a condition of employment, either before or after hiring.

Moderate Union

A labor union that adopts a less confrontational stance towards employers and focuses on negotiation and compromise.