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Business law - Partnership

Hi!

Ehm I a couple of questions.

1. Ok currently I' m doing partnership revision (learning, ok) and I understand the basic idea about it, but I really don't get the following sentences:

According to s.24(5) from the Act (Partnership act), a partner who contributes capital to the firm has a prima facie entitlement to participate in management. ( does it mean that even though he doesnt have the knowledge about the product/service that the firm offers, he still have equal rights with the other partner?)

The effect is that the introduction of a passive investor of the partnership requires the partner to outs the terms of s.24(5) of the act at cost. - i have no idea to think about this one.

And also I have a case to think about and these guys have decided to have a business together. How do I decide whether its a partnership or a company? I mean it just says "Bobs Cakes" (the business's name) - no limited liabilities, no & Co, no nothing...Im guessing that since there are two people - one having the skills and the other having the money - its a general partnership, but I haven't been given any specifics really.

Can you have a partnership and include only one of the partner's name?

I am so confused....

And how can you decide whether a firm is a company or a partnership - where u have limited information.

Any help will be appreciated :smile:

(edited 13 years ago)

Reply 1

jacketpotato

A company will always be called X Limited or X plc. It is possible for companies to trade under a different name to their actual name, but in exam questions this is unlikely. I think an exam question would make it clear if there was a company involved.