Asked by Emilija Dancetovic on Jul 05, 2024
Verified
Daniel is a general partner in a real estate investment firm. Hank and Barry are limited partners. Daniel, without the consent or ratification of Hank and Barry, can:
A) admit another limited partner.
B) act as an agent of the partnership.
C) rename the partnership using Hank's last name.
D) not have almost exclusive managerial control of the business.
Exclusive Managerial Control
A business arrangement where one party has the sole authority and responsibility for managing an organization or project.
General Partner
A member of a partnership who has unlimited liability for the debts of the business and participates in its management.
Limited Partner
An investor in a partnership whose liability is limited to the amount of their investment, with no direct involvement in the management of the business.
- Comprehend the functions and duties of general and limited partners within a partnership.
- Master the legal setup and rights concerning limited liability companies and limited partnerships.
- Understand the fiduciary duties and rights to access partnership books and records.
Verified Answer
KM
Krystal MartinezJul 05, 2024
Final Answer :
B
Explanation :
General partners, like Daniel, have the authority to act as agents for the partnership in conducting its business affairs. This means they can make decisions and enter into agreements on behalf of the partnership. Admitting new partners, renaming the partnership, and having exclusive managerial control without the consent of the limited partners are actions that typically require agreement from all partners or are restricted by the partnership agreement.
Learning Objectives
- Comprehend the functions and duties of general and limited partners within a partnership.
- Master the legal setup and rights concerning limited liability companies and limited partnerships.
- Understand the fiduciary duties and rights to access partnership books and records.