Luke Typically Spends 50-55 Hours Per Week Working in the Real

question 59

Multiple Choice

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer. Spencer only spends about 30 hours a week on partnership business. Under the RUPA:

• A) Luke would be entitled to payment from the partnership for the extra 20-25 hours per week he spends on partnership business unless a partnership agreement denies this right.
• B) the partners cannot agree to deny extra payment for extra work by a partner.
• C) unless the partners have otherwise agreed, Luke is not entitled to payment for his work for the partnership, even if it is disproportionate to his partner's work.
• D) Luke would be entitled to payment from the partnership only if the amount of time and effort he expends on partnership business is grossly disproportionate to that spent by his partner.

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Definitions:

Purchases Of Merchandise

Transactions involving the acquisition of goods for resale in the ordinary course of business, typically in a retail or wholesale setting.

Future Economic Benefit

The potential to contribute directly or indirectly to the flow of cash and cash equivalents to an entity.

Common Characteristic

A property or attribute that is shared among all members of a category.

Asset

An economic resource owned or controlled by an individual or corporation, expected to provide future benefit.