Daniel, Thomas, and Lucas Are Partners in a Law Firm

question 180

Multiple Choice

Daniel, Thomas, and Lucas are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business. Thomas dies suddenly of a heart attack. What will most likely become of the partnership?

• A) It will immediately cease to exist and Daniel and Lucas will have to find new jobs.
• B) Thomas's share of the business will automatically be split between Daniel and Lucas.
• C) Daniel and Lucas will be able to purchase Thomas's interest from his estate.
• D) Daniel and Lucas will have to quickly find a new partner to take Thomas's place.
• E) It will dissolve, and Daniel and Lucas will lose personal property to pay business debts.

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Definitions:

New-product Development

It refers to the complete process of bringing a new product or service to market, including idea generation, concept testing, design, development, and marketing.

Customers

Individuals or organizations that purchase goods or services for personal use or to fulfill their own business needs.

Suppliers

Businesses or individuals that provide goods or services to another company under a contract or agreement.

Nontraditional Firms

Companies that operate in non-conventional ways, often challenging established norms and practices in their industry.