Reference - Grooming Losses

question 95

Multiple Choice

Reference - Grooming Losses. Wally, Beverly, and Matthew formed a partnership to groom dogs. Unfortunately, the business did not go as well as expected and the partnership incurred some losses. The articles of partnership did not allocate profits or losses. Matthew claimed that he should not have to share in losses because he had groomed more dogs than anyone. Matthew also claimed that although the partnership did not reference compensation for additional duties, he was entitled to compensation because of his excessive work. Beverly claimed that she should not have to share in losses because she contributed more capital than did either of the others. Wally claimed that he should not have to cover the losses because both Beverly and Matthew had been hiding the books from him. He demanded to inspect the books and also to a review and listing of all partnership assets and profit. Beverly and Matthew denied that Wally was entitled to a review of the books and stored them in a safe deposit to which only Beverly had a key. They claimed complete innocence of any wrongdoing. Is Wally entitled to a review and listing of all partnership assets and profit?

• A) Only if the partnership agreement specifically gave him that right.
• B) Only if he can establish that one of the other partners failed to disclose a profit or benefit earned from the partnership.
• C) No, because he was not the managing partner.
• D) Yes, because he was wrongly denied access to books.
• E) Yes, because a partner is always entitled to such a review and listing.

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Weekly Basis

Referring to something that occurs every week.

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THC

Tetrahydrocannabinol, the psychoactive component of cannabis responsible for its mind-altering effects.