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.

---

Definitions:

Conglomerate Merger

A type of business combination where companies operating in unrelated business activities or industries merge or are acquired.

Market Extension

Strategies or efforts made by a company to broaden its market reach, either by introducing existing products to new geographical areas or demographic segments.

Sherman Act

An 1890 United States antitrust law aimed at maintaining fair competition in the marketplace by prohibiting monopolies and other business practices that restrain trade.

Section 1

Typically refers to a specific section within a legal, regulatory, or legislative document, outlining particular provisions or requirements.