Under the Uniform Partnership Act, in Regard to an Agreement

question 11

Multiple Choice

Under the Uniform Partnership Act, in regard to an agreement with a third party, which of the following is true under the regarding personal liability of partners for obligations of the partnership?

• A) If the partnership is liable, each individual partner has unlimited personal liability.
• B) If the partnership is liable, each individual partner only has personal liability in proportion to the number of partnership members.
• C) If a partnership is liable, each individual partner only has personal liability in proportion to the way in which profits are allocated.
• D) If a partnership is liable, each individual partner only has personal liability in proportion to the way in which losses are allocated.
• E) Individual partners do not have personal liability for obligations of a partnership.

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Definitions:

Consulting Business

A business that offers expert advice in a particular area, such as management, education, or marketing.

Income Tax Service

A service that involves the preparation and filing of income tax returns for individuals or entities, typically provided by accountants or professional tax preparers.

Management Consulting

The practice of helping organizations to improve their performance, primarily through the analysis of existing business problems and development of plans for improvement.

Warranty of Authority

An assurance given by an agent that they have the actual authority to act on behalf of the principal, protecting the third party in contractual agreements.