What are the partners rights with respect to management

Assignment Help Accounting Basics

Reference no: EM131025433

1. Sam and Teresa decide to go into business selling discounted merchandise through their web site "e-Buy". They sign a partnership agreement that requires Sam to contribute $12,000 and Teresa to contribute $8,000 in capital to start the firm. The agreement also states that only Sam will have the authority to bind the partnership in deals with third parties, but the agreement says nothing about the management of the firm or a division of profits. Without Sam's knowledge, Teresa tells United Computer Products, Inc. that she represents the firm and signs a contract with United to buy hard drives for resale on e-Buy. In the first year, e-Buy makes a profit of $50,000. What are the partners rights with respect to management of the firm? Is the partnership bound to the contract with United? Do the partners split the first year's profits? If so, how much is each entitled to? Explain fully.

Reference no: EM131025433

Questions Cloud

Racism and tribalism in the namibian society : This has led to a public lecture on racial and tribal discrimination which was held on the 10th February 2016 to deliberate on whether or not a new law is needed. Conduct a thorough investigation on the causes and impact of racism and tribalism in..

How many valence electrons does this atom possess : Ti and Hf behave as though they possess the same number of valence electrons.Which of the subshells in the electron configuration of Hf behave as valence orbitals? Which behave as core orbitals?

Transnational computer company : Jason had worked a standard five-day week in his previous job, as a qualified engineer, with a transnational computer company. State two reasons why would Jason want to start his own business.

How many valence electrons does a nitrogen atom possess : What are valence electrons? How many valence electrons does a nitrogen atom possess? An atom has the electron configuration 1s22s22p63s23p2. How many valence electrons does the atom have?

What are the partners rights with respect to management : What are the partners rights with respect to management of the firm? Is the partnership bound to the contract with United? Do the partners split the first year's profits? If so, how much is each entitled to? Explain fully.

Solve each system of equations by the graphing method : solve each system of equations by the substitution method

Explain why nacl is a stable ionic solid : Consider the "green-green" interactions between ions 1 and 3, ions 1 and 5, and ions 3 and 5.Which one or more of these three will result in the interaction of largest magnitude? Which one or more will result in the interaction of the smallest mag..

What would be the interest payable : If lessee’s fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year?

Derive an equation for a line parallel to the given line : The Body Mass Index (BMI) is used to assess the level of fat in a person's body. When Tim weighed 147 pounds his BMI was 23.4. When his weight went to 185, his BMI was 29.5. What would Tim's BMI be if he reduced his weight to 160 pounds?

User Account

All Pages