Answer

QUESTION 11 Seteth and Flayn jointly purchase an apartment building and rent the apartments to customers. They have a joint bank account, where they deposit re and withdraw funds for building maintenance. They consult each other regarding decisions related to the building and only act when both are in agreen There is nothing in writing dictating the nature of Seteth and Flayn's relationship, and they have not filed anything to have their business recognized by state. Is this a general partnership? O Yes, this is an implied partnership. O Yes, this is a partnership by estoppel. No, because nothing is in writing O No, because nothing is filed with the state. QUESTION 12 Charley has come up with a new idea for a company, but he has no capital. He convinces Damond to enter into a general partnership with him and invest $200,000. Charley has no money in the business, but he puts in all of the labor. They have a partnership agreement, where Charley and Damond split the profits 60% to Charley and 40% of Damond. Sadly, the partnership suffers massive losses. Unless the partnership agreement provides otherwise, the losses will O all be suffered by Damond, as he is the only one with money in the business. O be suffered equally, as they have an equal say in the partnership be distributed 60% to Charley and 40% to Damond. O all be suffered by Charley, as he put all of the labor into the business