Asked by
Debbie Donnelly
on Nov 10, 2024
Verified
Jones is a partner in a law firm in a small town and he is also doing legal work out of his home in the evening for himself. Which of the following statements is correct with respect to his responsibility for the money he earns?
A) Jones has no responsibility; the money he makes by this extra work is his.
B) If Jones did not have the consent of his partners, Jones must pay over all the money he makes through his business at home to the partnership.
C) If Jones is a 1/3 partner in the law firm, he need only pay over 1/3 of what he makes.
D) Such conduct will automatically dissolve the partnership, but he can keep what he has made.
E) Jones has a duty to tell the other partners, but the money is his and he can keep up the extra work regardless of the other partners' consent.
Partnership
A legal arrangement in which two or more individuals share ownership of a business, including its profits, liabilities, and operational responsibilities.
Legal Work
Any work involving the practice of law, including litigation, legal advice, and documentation.
Consent
Voluntary agreement and acceptance by a person to undergo a particular activity or process, understanding and agreeing to its implications and consequences.
- Recognize the implications of partnership duties and responsibilities on personal liability and profit sharing.
- Recognize the consequences of unauthorized activities by partners and their impact on the partnership and individual partners.
Verified Answer
JA
Learning Objectives
- Recognize the implications of partnership duties and responsibilities on personal liability and profit sharing.
- Recognize the consequences of unauthorized activities by partners and their impact on the partnership and individual partners.