i. To assign all the partnership’s assets to a bank in trust for the benefit of creditors, hoping to work out satisfactory arrangements without filing for bankruptcy.

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i. To assign all the partnership’s assets to a bank in trust for the benefit of creditors, hoping to work out satisfactory arrangements without filing for bankruptcy.

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Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
a. To add Jones, also an engineer, as a partner, Jones being willing to contribute a substantial amount of new capital.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
b. To add Jones, also an engineer, as a partner, Jones being willing to contribute a substantial amount of new capital.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
c. To move the partnership’s offices to less expensive quarters.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
 
d. To demand a formal accounting.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
 
e. To dissolve the partnership.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
f. To agree to submit certain disputed claims to arbitration, which Adams believes will prove less expensive than litigation.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
g. To sell all of the partnership’s personal property, with Adams having what he believes to be a good offer for the property from a newly formed engineering firm.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
h. To alter the respective interests of the parties in the profits and losses by decreasing Adams’s share to 40 percent and increasing the others’ shares accordingly.

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is entitled to 55 percent of the profits and the others to 15 percent each. The venture is a total failure. Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. Explain how many of the partners must agree to achieve each of the following objectives?
i. To assign all the partnership’s assets to a bank in trust for the benefit of creditors, hoping to work out satisfactory arrangements without filing for bankruptcy.

Explanation & AnswerSolution by a verified expert

Explanation

Since all partners in the firm have equal footing in the management, it is necessary to have the agreement of every partner, for the firm to add a new partner according to Section 401(i) of the Revised Uniform Partnership Act (RUPA) and Section 18(g) of the Uniform Partnership Act (UPA). If there is no unanimity in the agreement among the partners, anew partner cannot be added to the firm.

Verified Answer

All partners of the firm must agree for the addition of a new partner. Even if a single existing partner does not agree with the idea, the addition of a new partner cannot take place.

Explanation

According to Section 401(j) of the Revised Uniform Partnership Act (RUPA) and Section 18(g) of the Uniform Partnership Act(UPA), the vacant plot of land, which is held in the firm’s name, cannot be sold until a majority of the partners agree.

Verified Answer

A majority of the partners must agree to sell the plot of land, which is owned by the firm.

Explanation

The relocation of an office space is an ordinary decision associated with the partnership and needs the consent of a majority of the partners, for it to be made practical. As per Section 401(j) of the Revised Uniform Partnership Act (RUPA) and Section 18(h) of the Uniform Partnership Act (UPA), if the decision is only backed by a minority of the partners, it cannot be implemented.

Verified Answer

A majority of the partners must agree to the decision to move the office space to a less expensive place. If not, the shift cannot take place.

Explanation

According to Section 22 of the Uniform Partnership Act (UPA), any partner has the authority to ask for a formal accounting as long as the current condition of the business demands.

Verified Answer

Only one partner is needed to demand a formal accounting since every partner has the right to do so, taking into consideration, the present circumstance of the business.

Explanation

According to Section 601, 602, and 801(1) of the Revised Uniform Partnership Act (RUPA) and Section 31 of the Uniform Partnership Act (UPA), any partner has the right to dissolve their individual partnership, if the partner finds it to be the right thing to do. The partnership agreement does not make any specific instructions stating otherwise. If the partnership is for a definite term, the withdrawal can only be done after the completion of the specified period of time.

Verified Answer

A partner can take the decision individually without the agreement of other partners since the partnership is not for a definite term or a particular undertaking. If any such specifications are mentioned in the partnership agreement, then the discharge is complicated.

Explanation

There are certain decisions that need unanimous consent of the partners for them to be made practical. When it comes to the submission of disputed claims to arbitration, it requires at least a majority of the partners to agree to the proposal. If a majority of the partners are unwilling to do so, it is not possible for Individual A to carry out the decision.

Verified Answer

A majority of the partners must agree to the decision to submit the disputed claims to arbitration. If a majority of the partners do not agree, the decision by Individual A cannot be made practical.

 

Explanation

According to Section 301(2) of the Revised Uniform Partnership Act (RUPA) and Section 9 of Uniform Partnership Act(UPA), unanimous consent of the partners is required for the firm to take such a decision. If such unanimity is not found, the decision that the majority agrees to take, is carried out. The disposition of the partnership’s individual property may help the firm get out of the difficult situation it is in; if a majority of the partners agree to do so, the action can be carried out.

Verified Answer

All partners must unanimously agree to the proposal since it involves the disposition of the partnership’s personal property. If all partners do not agree, the decision of the majority is carried out.

Explanation

According to Section 401(j) of the Revised Uniform Partnership Act (RUPA) and Section 18(h) of the Uniform Partnership Act (UPA), it is said that the unanimous consent of the partners is needed for making any changes in the interest percentage of profit and loss. It is a major decision and the existing interests, which every partner receives, are mentioned in the partnership agreement, making it mandatory to have the consent of every partner for making any changes to it. If such a mention was not made in the agreement, the unanimous consent would not be necessary.

Verified Answer

The interests of the partners have already been specified in the partnership contract and any changes that are to be made need the unanimous consent of all partners. If the interests of profit and loss were not mentioned in the agreement, this would not have been the case.

Explanation

Section 9(3) of the Uniform Partnership Act (UPA) mandates the unanimous consent of the partners for Individual A to create an assignment in the trust. No mention of the number of partners is mentioned in the Revised Uniform Partnership Act (RUPA). It, therefore, requires either a unanimous consent or the consent of at least a majority of partners to carry out the decision.

Verified Answer

Unanimity requires the consent of all of partners or at least of a majority of partners for the action to take place.

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