James's Partnership Agreement with Two Other Men Was a Bit

question 78

Multiple Choice

James's partnership agreement with two other men was a bit unsound.One of the problems the men were encountering was uneven productivity among the partners.The agreement required each partner to contribute to every aspect of the business to receive an equal portion of the profits.This agreement did not reflect the idea that

• A) all partners need not be equal;that is,there are different types of partners.Some may be fully active in running the business,whereas others may have a more limited role.
• B) limited partners are required to be active in day-to-day business operations.
• C) customers and creditors of a limited partnership need not be protected.
• D) the Uniform Partnership Act requires every general partnership to have at least one limited partner.
• E) each partner must agree to contracts entered into on behalf of all the others.