Questions
Single choice
When a partner leaves a partnership:
Options
A.a. s 40 of the Partnership Act applies
B.b. s 40 of the Partnership Act does not apply
C.c. The outgoing partner is not likely to be susceptible to partnership by holding out
D.d. A third party’s awareness of the partner leaving will not be relevant
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
Question: When a partner leaves a partnership, Select one:
Option a: s 40 of the Partnership Act applies
Option b: s 40 of the Partnership Act does not apply
Option c: The outgoing partner is not likely to be susceptible to partnership by holding out
Option d: A third party’s awareness of the partner leaving will not be relevant
Analysis of each option:
Option a: s 40 of the Partnership Act applies
This choice asserts that section 40 of the Partnership Act is applicable when a partner exits. In many jurisdictions, s40 deals with the authority of partners, effects on the firm, or implications for outsiders after a partner leaves. The statement aligns with the typical......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Fred is a limited partner in the Bolton and Jost, Limited Partnership (Bolton & Jost). Bolton and Jost have developed several large apartment buildings in Iowa. In July of 2024, one of the general partners, Jost, became ill. Fred stepped in, took over Jost’s duties, and has been actively involved on a daily basis in running the Limited Partnership ever since. Jon and Ross have approached Fred and asked him to join them in forming a new partnership that would own apartment buildings in direct competition with Bolton and Jost.
Oak Street Design is a general partnership formed by Alex, Brooke, and Chen. The partnership agreement is silent regarding withdrawal of partners. After a disagreement over business strategy, Alex notifies Brooke and Chen that he is immediately withdrawing from the partnership and stops participating in the business. Brooke and Chen continue operating Oak Street Design under the same name and with the same clients. The partnership was formed for an indefinite term. No court order has been issued, and no agreement has been reached to wind up the business. Based on the facts above, which of the following statements is the most accurate?
Partnership law in Australia is regulated by:
Partnership law in Australia is regulated by:
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!