1. If a partnership contract does not state the period of time the partnership is to exist, when does the partnership end? 2. What does the term mutual agency mean when applied to a partnership? 3. Can partners limit the right of a partner to commit their partnership to contracts? Would such an agreement be binding (a) on the partners and (b) an outsiders! 4. Assume that Amey and Lacey are partners. Lacey dies, and her son claims the right to take his mother's place in the part- nership. Does he have this right? Why or why not? 5. Assume that the Barnes and Ardmore partnership agree- ment provides for a two-third one-third sharing of income but says nothing about losses. The first year of partnership opera- tion resulted in a loss, and Bumes argues that the loss should be shared equally because the partnership agreement said noth- ing about sharing losses. Is Barnes correct? Explain. 6. Allocation of partnership income among the partners appears on what financial statement? 7. What does the term unlimited liability mean when it is applied to partnership members? 8. How does a general partnership differ from a limited partnership? Next to the following list of eight characteristics of business organizations, enter a brief description of how cach characteristic applies to general partnerships Characteristic Application to General Partnerships 1. Ease of formation 2. Transferability of ownership 3. Ability to raise large amounts of capital 4. Life 5. Owners' lability 6 Legal status 7. Tax status of income & Owners' authority