Business Law Flashcards
1
Q
When is a partnership formed?
A
When two or more people carry on a business in common with a view of profit.
2
Q
What must a partner do if they carry on a competing business without consent?
A
They must account to the partnership for all profits made, but profits are held on trust only if the Partnership Act 1890 is breached.
3
Q
Can a partner keep profits from competing business activities?
A
Yes, if they fully disclose and receive consent from the other partners.
4
Q
How are losses shared on dissolution if profits are shared unequally?
A
Losses are paid in proportion to the partners’ entitlement to share profits.
5
Q
A
