operating partnerships ch. 26-3. goals list the powers of a partner explain the duties and...
TRANSCRIPT
BY:LABRENDA MOBLEY
Operating PartnershipsCh. 26-3
Goals
List the powers of a partner Explain the duties and potential
liabilities of a partner
Key Term:Tenancy in partnership
A Partners Powers
Right to participate in management Rights in partnership property Right to extra compensation A partners authority A partners duties A partners potential liabilities
Right to Participate in Management
A partner may buy, sell , hire, fire, and make other routine decisions in carrying ordinary activities of the firm.
Routine decisions have the right to do things that is normally done by managers in similar firms.
When a difference of opinion arises as to ordinary matters connected with the business their must be a majority vote of the partners decides the issue.
In the contrary agreement , both profits and losses are shared equally regardless of different amounts of capital contributed or time spend.
Rights in partnership property Partnership property
consists of all cash and all property originally contributed by the partners as well as all property later acquired and retained by the firm.
In tenancy in partnership, each partner is a co-owner of all the partnership property and is not the sole owner of any specific piece.
Each partner has an equal right to use firm property for partnership purposes. However, no partner may use firm property for personal purposes.
Right to extra compensation
Common sense and fairness often dictate that a partner who gives more should receive more, but all partners must agree to this.
A Partners Authority The law implies to
each member the authority necessary to carry on the business which makes the authority make binding contracts for the firm, receive money owed to and settle claims against the firm, borrow money in the firm`s name, sell,
buy, draw and cash checks and drafts, hire and fire employees and agents, and receive notice of matters affecting the partnership.
A partners duties
By law a partner has the right to comply with partnership agreement and decisions, use reasonable care,
act with integrity and good faith, not conduct competing business, and keep accurate records.
A partners potential liabilities
Between or among the partners they may make any agreements they choose regarding authority to run the business.
The partnership firm and all of its members are liable without limit for obligations of the firm that arise out of contracts made by any partner within the scope of the firm`s business.
The End