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One which has complied with all the legal requirements for its establishment.
One which has complied with all the legal requirements for its establishment.
one who is liable to the extent of his separate property after all the assets of the partnership are exhausted.
one who is liable to the extent of his separate property after all the assets of the partnership are exhausted.
If a partner withdraws a substantial amount of money with the intention of repaying it.
If a partner withdraws a substantial amount of money with the intention of repaying it.
Since they never had a previous business, journal entries and general ledger will be recorded in new set of books.
Since they never had a previous business, journal entries and general ledger will be recorded in new set of books.
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If the investment made by the new partner is less than the book value of the capital interest that has been purchased, then the bonus will be allocated to that new partner.
If the investment made by the new partner is less than the book value of the capital interest that has been purchased, then the bonus will be allocated to that new partner.
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one who takes active part in the business but is not known to be a partner by outside parties.
one who takes active part in the business but is not known to be a partner by outside parties.
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one who is actually not a partner but who represents himself as one.
one who is actually not a partner but who represents himself as one.
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blank partnership of all present property. All contributions become part of the partnership fund.
blank partnership of all present property. All contributions become part of the partnership fund.
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associated with professions like, medicine, public accounting, law etc
associated with professions like, medicine, public accounting, law etc
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essence of partnership is that each of the partner must share in profits/ losses of the venture.
essence of partnership is that each of the partner must share in profits/ losses of the venture.
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Study Notes
Partnership Basics
- A partnership must comply with all legal requirements for its establishment.
Types of Partners
- Limited Liability Partner: liable to the extent of their separate property after all the assets of the partnership are exhausted.
- Active Partner: takes an active part in the business, but is not known to be a partner by outside parties.
- ** Ostensible Partner**: not actually a partner, but represents themselves as one.
- Partners in Professions: associated with professions like medicine, public accounting, law, etc.
Partnership Formation
- New Partner Investment: if the investment made by the new partner is less than the book value of the capital interest purchased, the bonus is allocated to the new partner.
- Initial Recordings: journal entries and general ledger are recorded in a new set of books if the partners have no previous business.
Partnership Fund
- Contributions: all contributions become part of the partnership fund.
Partnership Essence
- Profit and Loss Sharing: the essence of partnership is that each partner must share in the profits and losses of the venture.
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Description
Test your knowledge on the legal requirements necessary for establishing a business entity. This quiz covers various regulations and laws that must be adhered to in order to ensure compliance.
