Rights of Partners

Question 1

Sharing of Profits and Losses

Answer 1

Unless otherwise agreed, profits are shared equally between partners, and losses will be shared in same ratio.

Question 2

Management & Control

Answer 2

Each partner has equal rights in the management and control of the partnership business.

Question 3

Transfer of Ownership

Answer 3

A partner can only transfer:
1) his interest in share of profits/losses, and
2) right to receive distributions

cannot transfer right to inspect books/participate management

Question 4

Consent to Transfer

Answer 4

All partners must consent for a transferee of a partnership interest to become a partner in business.

Question 5

Rights to Partnership Property

Answer 5

All property acquired by a partnership or with partnership assets is owned by the partnership.

personal use requires consent