Sally and Tom decide to go into business, selling discounted merchandise through their Web site "e-Buy." They sign a partnership agreement that requires Sally to contribute $12,000 and Tom to contribute $8,000 in capital to start the firm. The agreement
also states that only Sally 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 Sally's knowledge, Tom tells United Computer Products, Inc, that he 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 the 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?
The partners' rights with respect to the management of the partnership business and the profits of the firm is a split of each equally. The partnership is bound to the contract with United. Because the agreement is silent on the subject of the firm's management, each partner has an equal right to manage the business. For the same reason, each partner has a right to an equal share of the profits, even though their capital contributions were not equal. The apparent authority of a partner to bind a partnership in dealing with third parties cannot be limited by an agreement between the partners of which third parties are unaware. Every partner is an agent of the partnership and may bind the firm to contracts with third parties. Only if the third party is aware that a partner's authority is limited will the liability of the firm also be limited to the same extent.
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Sociological jurisprudence maintains that:
A. courts should not consider their perceptions of the prevailing public policies in interpreting statutes. B. legal decisions should be based on short-term social goals. C. the law is the command of legitimate political institutions. D. courts must look beyond the plain meaning of a statute to consider the law's legislative purpose.
Which of the following statements is false?
a. The break-even point will increase if fixed cost increase. b. C-V-P analysis cannot be used to determine the activity level needed to achieve a certain amount of profits. c. C-V-P analysis can be used to determine the level of activity needed to achieve a specific before tax profit. d. Managers often want to include taxes in their analysis in order to determine an after tax level of income.
Name the seven major elements of the marketing manager's role in managing promotion.
What will be an ideal response?
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year: ConnectionsTime on Network (hours)Commercial60,000120,000Retail80,000150,000Consumer100,000330,000The cost accountant determined $1,700,000 of the server network's costs were fixed and should be allocated based on the number of connections. The remaining costs should be allocated based on the time on the network. What is total server network costs allocated to the Consumer Division (rounded to the nearest whole dollar), assuming the company uses dual-rates to allocate common costs?
A. $1,200,000. B. $954,896. C. $750,000. D. $1,093,333.