Mark and James Established a Partnership Firm Dealing with Textiles

question 16

Multiple Choice

Mark and James established a partnership firm dealing with textiles. Both of them contributed equally to the partnership during establishment. However, two years later James sold his share of the firm to Mike. Which of the following is legally permissible in such a scenario?

• A) James is entitled to keep the money he received from Mike.
• B) Mike can claim nondisclosure and reclaim the money from James.
• C) Mark can sue Mike for buying the firm from James.
• D) Mark can sue James and reclaim the other half.

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Definitions:

Sales Per Square Foot

A retail metric that measures the efficiency of a retail space by dividing total sales by the total floor area of retail space.

Retail Life Cycle

The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages.

Retail Outlets

Physical or brick-and-mortar stores where products are sold directly to consumers.

Market Entry

The strategy or process of introducing a new product or service into a new or existing market.