24. Rachel and Cyndi started a retail business called Zebra Toy Company. The bus

Question

24. Rachel and Cyndi started a retail business called Zebra Toy Company. The business is operated as a partnership. Under partnership law: A. Rachel is personally liable for any business contracts entered into by Cyndi B. Rachel is personally liable for any negligent act committed by Cyndi in the scope of the business activity Rachel is personally liable for any business debts, regardless of whether she or Cyndi crated the obligation. C. D. All the above are correct 25. Preemptive rights are: A. not legal in the majority of states. B. designed to prevent dilution of a shareholder's ownership in the company. C. designed to indemnify managers who act in good faith D. required to be offered to shareholders by the Model Statute Jackie and Robert own an apartment building as partners. Cyndi, one of their tenants, gives Robert written notice she will be moving out at the end of the following month. Robert did not tell Jackie that Cyndi was moving. Has Cyndi properly given notice to the partnership? A. No. Cyndi has an obligation to notify both Robert and Jackie. B. No. Jackie was not notified since Robert never told her Cyndi was moving C. Yes. Notice to Robert was notice to the partnership. D. Yes, if it is determined that Robert acted negligently in failing to notify Jackie. 26.

Explanation / Answer

Ans 24 (D) All of the above are correct.

Under Limited Partnership each partner jointly or severally liable for the acts of another partners.

Ans 25 (B) Preemptive rights are those rights which helps to protect the rights of existing shareholder. It helps to protects the ownership percentage of existing shareholders.

Ans 26(C) Partnership is not a distinct legal entity apart from its partners. Firm has not separate right of partnership assets.so notice issued to Robert was notice to partnership.

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