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STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—1ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
whetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱ
ȱȱȱAnswersȱ
ȱȱ1.ȱCorporationsȱareȱtheȱmostȱnumerousȱlegalȱformȱofȱbusinessȱȱ
organization.ȱ
ȱȱ1.ȱ_____ȱ
ȱȱ2.ȱAȱcorporationȱcanȱhaveȱaȱperpetualȱexistence.ȱȱȱ2.ȱ_____ȱ
ȱȱ3.ȱAȱpartnershipȱendsȱifȱoneȱpartnerȱwithdrawsȱorȱdies.ȱȱȱ3.ȱ_____ȱ
ȱȱ4.ȱAȱcorporationȱisȱanȱassociationȱofȱtwoȱorȱmoreȱpersonsȱtoȱcarryȱ
onȱaȱbusinessȱforȱprofit.ȱ
ȱȱ4.ȱ_____ȱ
ȱȱ5.ȱAȱpersonȱwhoȱinvestsȱinȱaȱcorporationȱrunsȱtheȱriskȱofȱlosingȱallȱ
ofȱhisȱorȱherȱpersonalȱworth.ȱ
ȱȱ5.ȱ_____ȱ
ȱȱ6.ȱTheȱsoleȱproprietorȱownsȱallȱtheȱassetsȱandȱhasȱfullȱpersonalȱ
liabilityȱforȱallȱtheȱdebtsȱofȱhisȱorȱherȱsoleȱproprietorship.ȱ
ȱȱ6.ȱ_____ȱ
ȱȱ7.ȱCorporationsȱusuallyȱhaveȱgreaterȱfinancialȱstrengthȱthanȱdoȱ
otherȱformsȱofȱbusinessȱorganizations.ȱ
ȱȱ7.ȱ_____ȱ
ȱȱ8.ȱTheȱownerȱofȱaȱsoleȱproprietorshipȱmustȱobtainȱaȱcharterȱfromȱ
theȱstate.ȱ
ȱȱ8.ȱ_____ȱ
ȱȱ9.ȱȱ UnderȱtheȱprovisionsȱofȱtheȱUPA,ȱifȱutilized,ȱgeneralȱpartnersȱ
willȱshareȱallȱprofitsȱandȱlossesȱequally.ȱȱȱ
ȱȱ9.ȱȱ_____ȱ
10.ȱTheȱprivatelyȱheldȱrealȱandȱpersonalȱpropertyȱasȱwellȱasȱtheȱ
businessȱpropertyȱofȱaȱsoleȱproprietorȱmayȱbeȱusedȱtoȱsatisfyȱ
theȱdebtsȱofȱherȱorȱhisȱbusiness.ȱ
10.ȱ_____ȱ
LegalȱApplicationsȱ
11.ȱBenjaminȱKressȱlovesȱtoȱcook.ȱHeȱhasȱcollectedȱaȱvarietyȱofȱcookbooksȱandȱcookȬ
ingȱutensilsȱinȱtheȱpastȱseveralȱyears.ȱHisȱfriendsȱthinkȱheȱshouldȱstartȱaȱcateringȱ
businessȱorȱaȱsmallȱrestaurant.ȱBenjaminȱlikesȱtheȱidea,ȱbutȱheȱdoesȱnotȱhaveȱtheȱ
necessaryȱcapitalȱforȱsuchȱaȱventure.ȱWhatȱadviceȱwouldȱyouȱgiveȱtoȱBenjamin?ȱ
ȱ
12.ȱRoxanneȱandȱMiguelȱstartedȱaȱtaxȱpreparationȱandȱconsultationȱbusiness.ȱTheyȱ
rentedȱofficeȱspaceȱfromȱJosephineȱandȱhiredȱJanineȱasȱaȱpartȬtimeȱassistant.ȱAreȱ
Roxanne,ȱMiguel,ȱJosephine,ȱandȱJanineȱallȱpartnersȱinȱtheȱbusiness?ȱExplainȱ
yourȱanswer.ȱ
Chapter 26 Forms of Business Organization 6-1
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—1ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱBarbaraȱCampbellȱwasȱconvictedȱofȱpresentingȱfalseȱfinancialȱreportsȱconcerningȱ
theȱfinancialȱconditionȱofȱtheȱGreenfieldȱMinorȱLeague,ȱofȱwhichȱsheȱwasȱtheȱ
treasurer.ȱTheȱleagueȱwasȱaȱbaseballȱleagueȱforȱyoungȱboys.ȱTheȱstatuteȱunderȱ
eightȱyears.ȱAtȱtheȱcloseȱofȱtheȱtrial,ȱCampbellȱmovedȱforȱaȱfindingȱofȱnotȱguiltyȱ
onȱtheȱgroundsȱthatȱtheȱstateȱhadȱnotȱintroducedȱanyȱevidenceȱthatȱtheȱleagueȱ
wasȱaȱpartnership.ȱWillȱtheȱcourtȱgrantȱtheȱdismissal?ȱExplain.ȱ[Commonwealthȱv.ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱFirstȱNationalȱBankȱandȱotherȱcorporationsȱbroughtȱsuitȱagainstȱtheȱMassachuȬ
settsȱattorneyȱgeneralȱseekingȱtoȱhaveȱtheȱcourtȱinvalidateȱaȱstate’sȱcriminalȱstaȬ
tute.ȱThisȱstatuteȱmadeȱitȱaȱcrimeȱforȱbanksȱandȱbusinessȱcorporationsȱtoȱspendȱ
moneyȱforȱpurposesȱofȱinfluencingȱorȱaffectingȱtheȱvoteȱonȱanyȱquestionȱsubmitȬ
state’sȱconstitutionȱtoȱauthorizeȱaȱpersonalȱincomeȱtax,ȱandȱtheȱattorneyȱgeneralȱ
declaredȱthatȱheȱwouldȱenforceȱtheȱstatuteȱagainstȱtheȱcorporations.ȱTheȱcorpoȬ
rationsȱargueȱthatȱthisȱinfringesȱuponȱtheirȱconstitutionalȱrightȱtoȱfreeȱspeech.ȱ
Canȱthisȱargumentȱbeȱeffectivelyȱmadeȱforȱaȱcorporation?ȱExplain.ȱ[FirstȱNationalȱ
6-2 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—1ȱRETEACHȱ
Directions:ȱMakeȱaȱcopyȱofȱtheȱfollowingȱlistȱofȱbusinessȱcharacteristicsȱforȱeachȱstuȬ
dent.ȱAskȱtheȱstudentsȱtoȱidentifyȱtheȱformȱorȱformsȱofȱbusinessȱthatȱhaveȱeachȱcharȬ
acteristicȱbyȱusingȱanȱSȱforȱsoleȱproprietorship,ȱaȱPȱforȱgeneralȱpartnership,ȱorȱaȱCȱ
forȱcorporationȱafterȱeachȱdescription.ȱ
ȱ
1.ȱOwnedȱbyȱoneȱpersonȱ
2.ȱDirector(s)ȱsetȱpolicyȱandȱappointȱofficersȱ
3.ȱModeratelyȱhardȱtoȱformȱ
4.ȱOwnerȱhasȱfullȱmanagerialȱcontrol.ȱ
5.ȱTerminatesȱuponȱowner’sȱdeathȱ
6.ȱEasiestȱbusinessȱtoȱformȱ
7.ȱMostȱdifficultȱbusinessȱtoȱformȱ
8.ȱExcellentȱabilityȱtoȱattractȱprofessionalȱmanagersȱ
9.ȱOwnerȱorȱownersȱhaveȱfullȱpersonalȱliabilityȱ
10.ȱMustȱbeȱcharteredȱbyȱanȱappropriateȱgovernmentalȱbodyȱtoȱexist.ȱ
11.ȱBusinessȱformȱthatȱdoesȱnotȱhaveȱtoȱendȱwithȱtheȱdeathȱofȱtheȱowner(s)ȱ
12.ȱMostȱnumerousȱformȱofȱbusinessȱ
13.ȱOwnersȱshareȱprofitsȱandȱlossesȱinȱwhateverȱproportionsȱtheyȱagreeȱuponȱ
14.ȱShareholdersȱhaveȱlimitedȱliabilityȱ
15.ȱNoȱlegalȱrequirementsȱforȱorganizingȱ
16.ȱBusinessȱisȱaȱseparateȱentityȱfromȱtheȱownersȱ
Chapter 26 Forms of Business Organization 6-3
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—1ȱENRICHMENTȱ
Inȱthisȱlesson,ȱyouȱlearnedȱthatȱthereȱareȱthreeȱmainȱformsȱofȱbusinessȱorganization:ȱ
theȱsoleȱproprietorship,ȱtheȱpartnership,ȱandȱtheȱcorporation.ȱTheȱsoleȱproprietorȬ
shipȱisȱownedȱbyȱoneȱpersonȱwhoȱhasȱcontrolȱoverȱtheȱbusiness,ȱkeepsȱallȱtheȱprofȬ
its,ȱandȱhasȱunlimitedȱpersonalȱresponsibilityȱforȱallȱdebtsȱandȱotherȱliabilities.ȱAȱ
partnershipȱisȱanȱassociationȱofȱtwoȱorȱmoreȱpersonsȱwhoȱcarryȱonȱaȱbusinessȱforȱ
profit.ȱTheȱpartnersȱshareȱallȱprofitsȱandȱlossesȱequallyȱunlessȱthey’veȱreachedȱaȱdifȬ
ferentȱdistributionȱagreement.ȱAȱcorporationȱisȱaȱlegalȱentityȱthatȱhasȱanȱexistenceȱ
distinctȱfromȱtheȱrealȱpersonsȱwhoȱorganize,ȱown,ȱandȱrunȱit.ȱItȱisȱtheȱcorporationȱ
thatȱmakesȱorȱlosesȱmoney.ȱFindȱfamilyȱmembers,ȱfriends,ȱorȱcommunityȱmembersȱ
whoȱownȱorȱrunȱeachȱofȱtheȱthreeȱtypesȱofȱbusinesses.ȱAskȱeachȱindividualȱwhyȱheȱ
orȱsheȱorganizedȱhisȱorȱherȱbusinessȱinȱtheȱformȱchosenȱandȱwhatȱsomeȱofȱtheȱrisksȱ
andȱbenefitsȱareȱtoȱthatȱparticularȱformȱofȱbusinessȱorganization.ȱIndicateȱtheirȱreȬ
sponsesȱnextȱtoȱeachȱbusinessȱorganizationȱlistedȱbelow.ȱ(Noteȱthatȱyouȱwillȱhaveȱ
additionalȱquestionsȱforȱyourȱpartnershipȱintervieweeȱinȱtheȱenrichmentȱactivitiesȱ
forȱtheȱnextȱtwoȱlessons.)ȱ
ȱ
1.ȱSoleȱproprietorshipȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱPartnershipȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱCorporationȱ
6-4 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—2ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ
heȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱt
ȱColumnȱ1ȱȱColumnȱ2ȱAnswersȱ
ȱȱ 1.ȱAȱpartnershipȱthatȱbuysȱandȱsellsȱgoodsȱȱ 1. _______ ȱ
andȱservicesȱcommerciallyȱ
ȱȱ 2.ȱAȱpartnershipȱinȱwhichȱtwoȱorȱmoreȱ2. _______ ȱ
personsȱorȱfirmsȱcombineȱtheirȱresourcesȱtoȱ
completeȱoneȱcomplexȱprojectȱ
ȱȱ 3.ȱAȱpartnerȱwhoȱmayȱbeȱknownȱtoȱtheȱȱ 3. _______ ȱ
publicȱasȱaȱpartnerȱbutȱtakesȱnoȱactiveȱpartȱ
inȱmanagementȱ
3.ȱAȱpartnerȱwhoȱ4.ȱAȱpartnerȱwhoȱisȱneitherȱknownȱtoȱtheȱpublicȱ4. _______ ȱ
asȱaȱpartnerȱnorȱactiveȱinȱmanagementȱ
ȱȱ 5.ȱAȱpartnershipȱthatȱprovidesȱprofessionalȱȱ 5. _______ ȱ
andȱnoncommercialȱassistanceȱ
ȱȱ 6.ȱAȱpartnershipȱthatȱhasȱatȱleastȱoneȱgeneralȱȱ 6. _______ ȱ
partnerȱwithȱunlimitedȱliabilityȱandȱatȱleastȱ
oneȱpartnerȱwithȱlimitedȱliabilityȱ
ȱȱ 7.ȱAȱpartnerȱwhoȱholdsȱhimȱorȱherselfȱoutȱasȱȱ 7. _______ ȱ
aȱpartnerȱbutȱisȱnotȱactuallyȱaȱpartnerȱ
ȱȱ 8.ȱAȱpartnershipȱthatȱisȱformedȱforȱaȱsingleȱȱ 8. _______ ȱ
transactionȱ
ȱȱ 9.ȱȱ Aȱpartnershipȱinȱwhichȱallȱpartnersȱ9. _______ ȱ
A.ȱlimitedȱȱ
ȱpartnershipȱ
B.ȱdormantȱpartnerȱ
C.ȱsecretȱpartnerȱ
D.ȱtradingȱȱ
ȱpartnershipȱ
E.ȱpartnershipȱatȱ
ȱwillȱ
F.ȱjointȱventureȱ
G.ȱnominalȱpartnerȱ
H.ȱnonȬtradingȱȱ
ȱpartnershipȱ
I.ȱwindingȬupȱȱ
ȱperiodȱ
J.ȱgeneralȱȱ
ȱpartnershipȱ
K.ȱsilentȱpartnerȱ
L.ȱspecialȱȱ
ȱpartnershipȱ
ȱȱ ȱassumeȱunlimitedȱpersonalȱliabilityȱforȱ
debtsȱofȱtheȱfirmȱ
ȱȱ 10.ȱAȱpartnershipȱinȱwhichȱaȱpartnerȱmayȱȱ 10. _______ ȱ
ȱȱ ȱnormallyȱwithdrawȱatȱanyȱtimeȱwithoutȱȱ ȱ
liabilityȱtoȱassociatesȱ
ȱȱ 11.ȱAȱtimeȱduringȱwhichȱallȱpartnershipȱ11. _______ ȱ
businessȱinȱprocessȱatȱtheȱtimeȱofȱdissoluȬ
tionȱisȱconcludedȱ
ȱȱ 12.ȱAȱpartnerȱwhoȱisȱnotȱknownȱtoȱtheȱpublicȱȱ 12. _______ ȱ
asȱaȱpartnerȱyetȱparticipatesȱinȱmanageȬ
mentȱ
Chapter 26 Forms of Business Organization 6-5
LegalȱApplicationȱ
13.ȱKelliȱandȱReneeȱareȱpartnersȱinȱaȱprosperousȱnailȱsalon.ȱKelliȱrecentlyȱlostȱherȱ
manicurist’sȱlicense,ȱbutȱsheȱwantsȱtoȱcontinueȱasȱaȱpartner.ȱReneeȱwantsȱtoȱterȬ
minateȱtheȱpartnership.ȱWhatȱshouldȱReneeȱdoȱinȱthisȱsituation?ȱ
6-6 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—2ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱEdwardȱTravis,ȱDonaldȱSt.ȱJohn,ȱandȱothersȱpurchasedȱ6,444ȱacresȱofȱlandȱforȱ
investmentȱpurposes.ȱTheȱamountȱpaidȱwasȱ$33,000.ȱTheyȱagreedȱtoȱshareȱ
equallyȱtheȱcostȱofȱtheȱproperty,ȱtheȱexpenseȱofȱmaintenance,ȱandȱtheȱprofitsȱorȱ
partiesȱthatȱtheȱventureȱwasȱterminatedȱandȱofferedȱtoȱreturnȱtheirȱmoneyȱifȱheȱ
soldȱtheȱpropertyȱatȱaȱprofit.ȱHeȱthenȱsoldȱtheȱpropertyȱforȱ$100,000.ȱTheȱotherȱ
partiesȱfiledȱsuitȱagainstȱhimȱallegingȱthatȱtheyȱhadȱaȱpartnershipȱandȱthatȱheȱ
owedȱthemȱanȱaccounting.ȱDoesȱSt.ȱJohnȱhaveȱtoȱgiveȱthemȱanȱaccountingȱbasedȱ
onȱtheirȱpartnership?ȱExplain.ȱ[Travisȱv.ȱSt.ȱJohn,ȱ404ȱA.ȱ2dȱ885ȱ(Conn.ȱ1978)]ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱAnnaȱReidȱformedȱaȱpartnershipȱwithȱHaleyȱandȱtwoȱotherȱmen.ȱTheyȱenteredȱ
intoȱaȱwrittenȱpartnershipȱagreementȱforȱtheȱpurposeȱofȱleasingȱforȱprofitȱcertainȱ
realȱproperty.ȱTheȱagreementȱprovidedȱthatȱifȱaȱpartnerȱdiedȱduringȱtheȱperiodȱ
underȱtheȱpartnershipȱagreement.ȱTheȱexecutorsȱcontendedȱthatȱtheȱpartnershipȱ
wasȱdissolvedȱbyȱReid’sȱletterȱand,ȱtherefore,ȱtheȱsurvivingȱpartnersȱhadȱnoȱ
rightȱtoȱpurchaseȱunderȱtheȱpartnershipȱagreement.ȱWhoȱisȱcorrect?ȱExplain.ȱ[GiȬ
rardȱBankȱv.ȱHaley,ȱ332ȱA.ȱ2dȱ443ȱ(Pa.ȱ1975)]ȱ
Chapter 26 Forms of Business Organization 6-7
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—2ȱRETEACHȱ
Directions:ȱMakeȱaȱbingoȱsheetȱforȱeachȱstudentȱwithȱfourȱrowsȱandȱfourȱcolumnsȱasȱ
shown.ȱWriteȱoneȱtermȱinȱeachȱspaceȱandȱleaveȱoneȱspaceȱopenȱforȱaȱfreeȱspace.ȱ
Makeȱtheȱpositioningȱofȱtheȱtermsȱdifferentȱonȱeachȱstudent’sȱsheet.ȱToȱsaveȱtime,ȱ
giveȱtheȱstudentsȱblankȱbingoȱsheetsȱandȱletȱthemȱwriteȱtheȱtermsȱinȱtheȱspaces.ȱAsȱ
eachȱdefinitionȱisȱread,ȱtheȱstudentsȱcoverȱtheȱappropriateȱterm.ȱIfȱaȱstudentȱcoversȱ
anȱincorrectȱterm,ȱheȱorȱsheȱmustȱremoveȱthatȱbingoȱchip.ȱTheȱgameȱcontinuesȱuntilȱ
aȱstudentȱcoversȱfourȱtermsȱinȱaȱhorizontal,ȱvertical,ȱorȱdiagonalȱrow.ȱ
ȱ
dissolutionȱlimitedȱȱ
partnershipȱ
dormantȱpartnerȱlimitedȱpartnersȱ
secretȱpartnerȱwindingȬupȱȱ
periodȱ
tradingȱȱ
partnershipȱ
partnershipȱȱ
atȱwillȱ
jointȱventureȱnominalȱpartnerȱterminationȱnonȬtradingȱ
partnershipȱ
generalȱȱ
partnershipȱ
silentȱpartnerȱ[FreeȱSpace]ȱpartnershipȱ
agreementȱ
ȱ
D
efinitionsȱtoȱreadȱtoȱstudentsȱinȱanyȱorder:ȱ
ȣȱ Theȱendingȱofȱaȱpartnershipȱ(termination)ȱ
sonsȱorȱfirmsȱcombineȱtheirȱresourcesȱtoȱ
completeȱoneȱcomplexȱprojectȱ(jointȱvenȬ
ture)ȱ
leastȱoneȱpartnerȱwithȱlimitedȱliability(limitedȱ
partnership)ȱ
ȣȱ AȱpartnershipȱinȱwhichȱaȱpartnerȱmayȱnorȬ
mallyȱwithdrawȱatȱanyȱtimeȱwithoutȱliabilityȱ
toȱtheȱotherȱpartnersȱ(partnershipȱatȱwill)ȱ
6-8 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—2ȱENRICHMENTȱ
Thisȱlessonȱprovidedȱadditionalȱdetailsȱaboutȱtheȱvariousȱtypesȱofȱpartnershipsȱandȱ
partners.ȱPartnershipsȱmayȱbeȱclassifiedȱaccordingȱtoȱtheirȱpurposeȱandȱaccordingȱtoȱ
theȱextentȱofȱtheȱliabilityȱofȱtheȱpartners.ȱInterviewȱaȱfamilyȱmember,ȱfriend,ȱorȱ
communityȱmemberȱwhoȱisȱinvolvedȱinȱaȱbusinessȱpartnership.ȱ(Youȱmayȱwantȱtoȱ
speakȱwithȱtheȱsameȱpersonȱyouȱinterviewedȱforȱLessonȱ26–1.)ȱReviewȱtheȱtermiȬ
nologyȱinȱtheȱlessonȱandȱaskȱtheȱquestionsȱlistedȱbelow.ȱ
ȱ
1.ȱHowȱmanyȱpartnersȱareȱinvolvedȱinȱthisȱbusiness?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱClassifiedȱbyȱpurpose,ȱisȱthisȱaȱtradingȱpartnershipȱ(buyingȱandȱsellingȱgoodsȱorȱ
servicesȱcommercially)ȱorȱaȱnonȬtradingȱpartnershipȱ(providingȱprofessionalȱandȱ
noncommercialȱassistance)?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱClassifiedȱbyȱextentȱofȱliability,ȱisȱthisȱpartnershipȱgeneralȱorȱlimited?ȱIfȱitȱisȱaȱ
limitedȱpartnership,ȱhowȱmanyȱofȱtheȱinvestorsȱareȱlimitedȱpartners?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
4.ȱAreȱthereȱanyȱsilentȱpartners,ȱsecretȱpartners,ȱdormantȱpartners,ȱorȱnominalȱ
partnersȱinvolvedȱinȱthisȱpartnership?ȱIfȱso,ȱdescribeȱtheirȱinvolvement.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—3ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱPlaceȱaȱYȱforȱYesȱorȱanȱNȱforȱNoȱinȱtheȱAnswersȱcolumnȱtoȱindicateȱtheȱ
correctȱanswer.ȱ
ȱ
Answersȱ
1.ȱIsȱaȱgeneralȱpartnerȱpersonallyȱliableȱforȱtheȱlossȱcausedȱbyȱȱ
ȱanotherȱpartner’sȱerrorsȱinȱjudgment?ȱ1.ȱ______ ȱ
2.ȱDoesȱaȱpartnerȱhaveȱaȱfiduciaryȱdutyȱtoȱtheȱotherȱpartners?ȱ2.ȱ______ ȱ
3.ȱCanȱaȱpartnerȱretainȱanyȱprofitȱorȱbenefitȱwithoutȱinformingȱȱ 3.ȱ______ ȱ
theȱotherȱpartners?ȱ
4.ȱCanȱaȱpartnerȱwhoȱwithdrawsȱfromȱaȱpartnershipȱimmediatelyȱ4.ȱ______ ȱ
ȱbeginȱtoȱcompeteȱwithȱtheȱfirmȱunlessȱrestrictedȱbyȱtheȱpartnershipȱ
ȱagreement?ȱȱ
5.ȱDoȱallȱpartnersȱhaveȱtheȱrightȱtoȱinspectȱtheȱpartnershipȱbooksȱȱ 5.ȱ______ ȱ
atȱanyȱreasonableȱtimeȱunlessȱotherwiseȱagreed?ȱ
6.ȱUnderȱtheȱUPAȱdoȱpartnersȱthatȱcontributeȱmoreȱcapitalȱtoȱtheȱ6.ȱ______ ȱ
ȱbusinessȱhaveȱaȱrightȱtoȱcastȱmoreȱthanȱoneȱvote?ȱȱ
7.ȱIsȱaȱunanimousȱagreementȱamongȱallȱpartnersȱnecessaryȱtoȱmakeȱȱ 7.ȱ______ ȱ
anyȱchangeȱinȱtheȱwrittenȱpartnershipȱagreement?ȱ
8.ȱCanȱaȱpartnerȱwithȱaȱlargeȱamountȱofȱoutsideȱincomeȱeverȱtakeȱȱ 8.ȱ______ ȱ
allȱtheȱlossesȱofȱaȱpartnershipȱforȱtaxȱpurposes?ȱ
9.ȱDoȱpartnersȱinȱaȱnonȬtradingȱpartnershipȱusuallyȱhaveȱtheȱȱ 9.ȱ______ ȱ
powerȱtoȱborrowȱmoneyȱforȱpartnershipȱpurposes?ȱ
10.ȱAreȱULPAȱandȱRULPAȱstatutesȱthatȱgovernȱtheȱformationȱandȱȱ
ȱoperationȱofȱgeneralȱpartnerships?ȱ10.ȱ______ ȱ
LegalȱApplicationsȱ
11.ȱLeonardo,ȱKevin,ȱandȱLonnyȱoperateȱaȱsnowȱremovalȱbusinessȱduringȱtheȱwinȬ
terȱmonths.ȱLeonardoȱplowsȱsnowȱforȱtheirȱclients.ȱKevinȱclearsȱsnowȱfromȱsiȬ
dewalksȱandȱalsoȱdrivesȱtheȱcompany’sȱsaltȱtruck.ȱLonnyȱspendsȱfiveȱhoursȱaȱ
weekȱkeepingȱtheȱpartnership’sȱrecords.ȱWhoȱshouldȱreceiveȱtheȱlargestȱshareȱofȱ
profits?ȱExplainȱyourȱanswer.ȱ
ȱ
ȱ
12.ȱSupposeȱLeonardoȱinȱExerciseȱ11ȱkilledȱaȱpedestrianȱwhileȱheȱwasȱnegligentlyȱ
drivingȱtheȱcompany’sȱplowingȱtruck.ȱWouldȱtheȱfirmȱbeȱcriminallyȱorȱcivillyȱliȬ
able?ȱExplainȱyourȱanswer.ȱ
6-10 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—3ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱCharlesȱWolfeȱandȱNickȱWolfeȱwereȱbrothersȱwhoȱformedȱaȱpartnershipȱandȱdidȱ
businessȱasȱWolfeȱConstructionȱCompany.ȱEastȱTexasȱSeedȱCompanyȱhadȱdoneȱ
UnknownȱtoȱEastȱTexasȱSeedȱCompany,ȱtheȱpartnershipȱhadȱbeenȱdissolvedȱbeȬ
foreȱtheȱtransactionȱandȱitȱwasȱonlyȱNickȱWolfeȱwhoȱorderedȱtheȱmerchandiseȱ
fromȱEastȱTexas.ȱWillȱCharlesȱbeȱliableȱforȱtheȱdebt?ȱExplain.ȱ[Wolfeȱv.ȱEastȱTexasȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱForȱseveralȱyears,ȱJohnȱDaleȱMaclayȱandȱhisȱwifeȱandȱchildrenȱhadȱbeenȱunderȱ
theȱmedicalȱcareȱofȱtheȱKelseyȬSeyboldȱClinic,ȱincludingȱtreatmentȱbyȱaȱpediatriȬ
claimedȱthatȱdespiteȱtheȱnotice,ȱtheȱdoctor’sȱrelationshipȱwithȱMaclay’sȱwifeȱ
continued.ȱMaclayȱbroughtȱsuitȱagainstȱDr.ȱBrewerȱandȱtheȱclinic,ȱallegingȱalienȬ
ationȱofȱaffection.ȱWillȱtheȱotherȱpartnersȱbeȱliableȱforȱBrewer’sȱacts?ȱExplain.ȱ
[KelseyȬSeyboldȱClinicȱv.ȱMaclay,ȱ466ȱS.W.ȱ2dȱ716ȱ(Texasȱ1971)]ȱ
Chapter 26 Forms of Business Organization 6-11
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—3ȱRETEACHȱ
ȱ
Directions:ȱȱWriteȱtheȱanswersȱtoȱQuestionsȱ1–9ȱonȱtheȱblanksȱprovided.ȱTheȱanswerȱ
toȱQuestionȱ10ȱshouldȱappearȱinȱtheȱverticalȱboxes.ȱ
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ10.ȱ
1.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ
2.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱ__ȱ__ȱ
3.ȱȱȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ ȱ__ȱȱ__ȱ
4.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱ__ȱȱ__ȱȱ
5ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱȱ
6.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ
7.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱȱ__ȱ__ȱ__ȱ__ȱȱ
8.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱȱ__ȱ__ȱȱ
9.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱȱ__ȱ__ȱ__ȱȱ
ȱ
ȱ
ȱ
ȱ
ȱȱ1.ȱEachȱpartnerȱhasȱtheȱ_________ȱtoȱcarryȱonȱtheȱbusinessȱ
ȱȱ2.ȱPartnerȱthatȱisȱliableȱforȱbothȱexistingȱandȱnewȱdebtsȱ
ȱȱ3.ȱAȱpartnerȱwhoȱ_________ȱisȱstillȱliableȱforȱtheȱfirm’sȱdebtsȱ
ȱȱ4.ȱEachȱpartnerȱactsȱasȱa(n)ȱ_________ȱforȱtheȱfirmȱ
ȱȱ5.ȱPartyȱwhoȱdoesȱnotȱhaveȱtheȱrightȱtoȱmanageȱaȱpartnershipȱ
ȱȱ6.ȱAȱpartnerȱcannotȱusuallyȱconductȱaȱbusinessȱthatȱwouldȱȱ_________ȱȱwithȱtheȱ
partnershipȱ
ȱȱ7.ȱPartnersȱinȱtradingȱpartnershipsȱhaveȱtheȱpowerȱtoȱȱ_________ȱmoneyȱ
ȱȱ8.ȱPartnersȱusuallyȱhaveȱȱ_________ȱȱsharesȱinȱtheȱprofitsȱ
ȱȱ9.ȱPartnersȱusuallyȱshareȱprofitsȱandȱ__________ȱequallyȱ
10.ȱ__________ȱagreementȱofȱtheȱpartnersȱisȱrequiredȱbeforeȱaȱwrittenȱpartnershipȱ
agreementȱcanȱbeȱchangedȱ
6-12 Chapter 26 Forms of Business Organization
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ26—3ȱENRICHMENTȱ
Asȱyouȱlearnedȱinȱthisȱlesson,ȱpartnersȱhaveȱspecificȱdutiesȱandȱrights.ȱAȱpartnerȬ
shipȱmayȱbeȱvaluableȱbecauseȱitȱcombinesȱtheȱcapital,ȱlabor,ȱskill,ȱandȱknowledgeȱofȱ
twoȱorȱmoreȱindividuals.ȱYet,ȱbecauseȱofȱtheȱcloseȱrelationshipȱandȱabilityȱtoȱbindȱ
eachȱotherȱlegallyȱinȱcontractsȱandȱtortsȱinvolvingȱthirdȱparties,ȱpartnersȱshouldȱbeȱ
selectedȱwithȱextremeȱcare.ȱLikewise,ȱeachȱpartnerȱshouldȱbeȱveryȱthoroughȱaboutȱ
performingȱhisȱorȱherȱdutiesȱasȱprescribedȱbyȱlawȱorȱbyȱagreement.ȱInterviewȱaȱfamȬ
ilyȱmember,ȱfriend,ȱorȱcommunityȱmemberȱwhoȱisȱinvolvedȱinȱaȱpartnership.ȱ(Youȱ
mayȱwantȱtoȱspeakȱwithȱtheȱsameȱpersonȱyouȱinterviewedȱforȱLessonȱ26–1ȱand/orȱ
26–2.)ȱAskȱtheȱpartnerȱtoȱprovideȱyouȱwithȱsomeȱexamplesȱofȱhowȱheȱorȱsheȱfulfillsȱ
eachȱspecificȱdutyȱasȱlistedȱbelowȱandȱwhyȱtheȱperformanceȱofȱthatȱdutyȱbyȱeachȱ
partnerȱisȱsoȱimportant.ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱAȱdutyȱtoȱuseȱreasonableȱcareȱ
ȱ
ȱ
ȱ
ȱ
3.ȱAȱdutyȱtoȱactȱwithȱintegrityȱandȱgoodȱfaithȱ
ȱ
ȱ
ȱ
ȱ
4.ȱAȱdutyȱtoȱavoidȱconductingȱcompetingȱbusinessȱ
ȱ
ȱ
ȱ
ȱ
5.ȱAȱdutyȱtoȱkeepȱaccurateȱrecordsȱ
Chapter 26 Forms of Business Organization 6-13
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
ȱ
TESTȱ
CHAPTERȱ26
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
1.ȱThatȱtheȱownerȱhasȱunlimitedȱpersonalȱresponsibilityȱforȱallȱdebtsȱ
andȱforȱotherȱliabilitiesȱthatȱtheȱbusinessȱmayȱincurȱisȱaȱstatementȱ
thatȱisȱonlyȱtrueȱofȱaȱsoleȱproprietorship.ȱ
2.ȱAdequateȱpublicȱliabilityȱinsuranceȱcanȱmakeȱtheȱrisksȱofȱunlimitedȱ
liabilityȱtolerable.ȱ
3.ȱInȱaȱlimitedȱpartnershipȱeveryȱpartnerȱisȱliableȱonlyȱtoȱtheȱextentȱofȱ
theirȱinvestment.ȱ
4.ȱLimitedȱpartnersȱdoȱnotȱusuallyȱshareȱinȱtheȱmanagerialȱcontrolȱofȱ
theȱbusiness.ȱ
5.ȱAȱlimitedȱpartnerȱmayȱbeȱemployedȱasȱanȱindependentȱcontractorȱ
forȱtheȱlimitedȱpartnershipȱunderȱtheȱRevisedȱUniformȱLimitedȱ
PartnershipȱAct.ȱ
6.ȱInȱtenancyȱinȱpartnership,ȱeachȱpartnerȱisȱaȱcoȬownerȱofȱtheȱentireȱ
partnershipȱpropertyȱandȱisȱnotȱtheȱsoleȱownerȱofȱanyȱpartȱofȱit.ȱ
7.ȱEveryȱpartnerȱmustȱbeȱservedȱwithȱaȱcopyȱofȱtheȱsummonsȱwhenȬ
everȱaȱgeneralȱpartnershipȱisȱsued.ȱ
8.ȱAȱcreditorȱofȱaȱpartnerȱcanȱreachȱspecificȱpartnershipȱpropertyȱtoȱ
satisfyȱtheȱdebtȱowedȱtoȱhimȱorȱher.ȱ
9.ȱAȱspecialȱpartnershipȱisȱformedȱbyȱmembersȱofȱaȱgeneralȱpartnerȬ
shipȱtoȱundertakeȱaȱuniqueȱventureȱinȱtheȱsameȱareaȱofȱbusinessȱ.ȱ
ȱ1.ȱȱ ȱ
ȱ
ȱȱ
ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ
ȱ
ȱ4.ȱȱ ȱ
ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ
ȱ
ȱ7.ȱȱ ȱ
ȱ
ȱ8.ȱȱ ȱ
ȱ
ȱ9.ȱȱ ȱ
6-14 Chapter 26 Forms of Business Organization
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱȱ Answersȱ
10.ȱTheȱmostȱnumerousȱlegalȱformȱofȱbusinessȱorganizationsȱareȱ(a)ȱ
10._______ȱ
11.ȱIfȱtwoȱorȱmoreȱpersonsȱorȱfirmsȱassociateȱtogetherȱbyȱcombiningȱ
theirȱresourcesȱandȱskillsȱtoȱdoȱoneȱcomplexȱproject,ȱtheyȱcreateȱaȱ
(a)ȱjointȱpartnership,ȱ(b)ȱjointȱventure,ȱ(c)ȱlimitedȱpartnership,ȱ(d)ȱ
secretȱpartnershipȱ
11._______ȱ
12.ȱInȱaȱlimitedȱpartnershipȱ(a)ȱoneȱpartnerȱmustȱbeȱaȱgeneralȱpartȬ
nerȱwithȱunlimitedȱliability,ȱ(b)ȱlimitedȱpartnersȱcontributeȱcapiȬ
talȱandȱshareȱprofitsȱandȱlossesȱwithȱgeneralȱpartners,ȱ(c)ȱbothȱaȱ
andȱb,ȱ(d)ȱnoneȱofȱtheseȱ
12._______ȱ
13.ȱȱ Whichȱofȱtheȱfollowingȱholdȱthemselvesȱoutȱasȱpartnersȱorȱletȱ
othersȱdoȱso,ȱbutȱareȱnotȱactualȱpartners?ȱ(a)ȱdormantȱpartner,ȱ(b)ȱ
13._______ȱ
14.ȱȱ Aȱminorȱenteringȱintoȱaȱpartnershipȱagreementȱ(a)ȱretainsȱallȱtheȱ
rightsȱandȱprivilegesȱofȱaȱminor,ȱ(b)ȱcanȱonlyȱfunctionȱasȱaȱlimȬ
itedȱpartner,ȱ(c)ȱcannotȱpleadȱminorityȱasȱaȱdefenseȱifȱsued,ȱ(d)ȱ
mustȱbeȱableȱtoȱdriveȱ
14._______ȱ
15.ȱȱ Theȱnormalȱsequenceȱofȱstepsȱinȱendingȱaȱpartnershipȱisȱ(a)ȱ
bankruptcy,ȱliquidation,ȱdistribution,ȱ(b)ȱdissolution,ȱwindingȬ
upȱperiod,ȱtermination,ȱ(c)ȱtermination,ȱdissolution,ȱdistribution,ȱ
(d)ȱeitherȱaȱ(inȱaȱbankruptcyȱsituation)ȱorȱcȱ(inȱaȱnormalȱsituaȬ
tion)ȱ
15._______ȱ
16.ȱRule(s)ȱgoverningȱtheȱoperationȱofȱaȱpartnershipȱincludeȱ(a)ȱaȱ
unanimousȱagreementȱofȱallȱpartnersȱconcerningȱanyȱchangeȱinȱ
theȱwrittenȱpartnership,ȱ(b)ȱoneȱvoteȱforȱeachȱpartnerȱregardlessȱ
ofȱtheȱamountȱofȱcapitalȱcontributed,ȱ(c)ȱthatȱnoȱactionȱcanȱbeȱ
takenȱonȱaȱquestionȱinȱwhichȱanȱevenȱnumberȱofȱpartnersȱareȱ
equallyȱsplit,ȱ(d)ȱallȱofȱtheseȱ
16._______ȱ
17.ȱȱ AȱunanimousȱagreementȱunderȱtheȱUniformȱPartnershipȱActȱisȱ
requiredȱforȱdecisionsȱtoȱ(a)ȱassignȱpartnershipȱpropertyȱtoȱcrediȬ
tors,ȱ(b)ȱbuyȱinventoryȱorȱequipmentȱforȱtheȱfirmȱonȱcredit,ȱ(c)ȱ
hireȱorȱfireȱaȱpermanent,ȱfullȬtimeȱemployee,ȱ(d)ȱbuyȱinsuranceȱ
17._______ȱ
18.ȱAȱpartnerȱwhoȱinvestsȱmoreȱcapital,ȱbringsȱinȱmoreȱbusiness,ȱorȱ
worksȱlongerȱandȱharderȱthanȱhisȱorȱherȱassociatesȱisȱentitledȱ
to(a)ȱaȱlargerȱpercentageȱofȱtheȱbusiness,ȱ(b)ȱaȱlargerȱshareȱofȱtheȱ
profits,ȱ(c)ȱextraȱpay,ȱ(d)ȱnoȱextraȱcompensationȱunlessȱallȱpartȬ
nersȱagree.ȱ
18._______ȱ
Chapter 26 Forms of Business Organization
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6-15
SECTION III—APPLY LEGAL PRACTICES
19.ȱSamanthaȱhasȱcomputerȱequipmentȱandȱaȱknowledgeȱofȱgraphicȱdesign,ȱwhileȱ
Oliviaȱhasȱnaturalȱartisticȱabilityȱincludingȱcreativeȱideasȱaboutȱcolorȱandȱdesignȱ
butȱnoȱcomputerȱtrainingȱorȱequipment.ȱWhichȱtypeȱofȱbusinessȱorganizationȱ
wouldȱbeȱbestȱforȱthem?ȱExplain.ȱ
6-16 Chapter 26 Forms of Business Organization
ANSWERS
Lessonȱ26—1ȱ
Quiz
ȱ
11.ȱBenjaminȱshouldȱseekȱsomeoneȱinterestedȱinȱbecomingȱaȱlimitedȱpartnerȱinȱtheȱ
12.ȱRoxanneȱandȱMiguelȱareȱtheȱonlyȱtwoȱpartners.ȱJosephineȱandȱJanineȱdoȱnotȱ
ȱ
Practice Activity
1.ȱYes,ȱtheȱcourtȱwillȱgrantȱtheȱdismissal.ȱTheȱcourtȱagreedȱwithȱCampbell.ȱTheȱ
stateȱarguedȱthatȱthereȱwasȱnoȱotherȱtermȱtheȱstatuteȱcouldȱhaveȱusedȱtoȱdeȬ
2.ȱYes,ȱthisȱargumentȱcanȱbeȱeffectivelyȱmadeȱforȱaȱcorporation.ȱTheȱU.S.ȱSupremeȱ
courtȱheldȱthatȱaȱcorporationȱhasȱaȱFirstȱAmendmentȱrightȱtoȱfreeȱspeech.ȱTheȱ
Reteach
Enrichment Activity
Lessonȱ26—2ȱ
Quiz
2.ȱFȱ
3.ȱKȱ
4.ȱBȱ
6.ȱAȱ
7.ȱGȱ
8.ȱLȱ
10.ȱEȱ
11.ȱIȱ
ȱ
13.ȱReneeȱshouldȱpetitionȱaȱcourtȱtoȱorderȱdissolutionȱsinceȱKelliȱisȱnoȱlongerȱcapaȬ
Practice Activity
1.ȱNo,ȱSt.ȱJohnȱdidȱnotȱhaveȱtoȱgiveȱanȱaccounting.ȱTheȱcourtȱheldȱthatȱthereȱwasȱ
noȱindicationȱthatȱtheȱassociationȱwasȱestablishedȱtoȱcarryȱonȱaȱbusiness,ȱbutȱraȬ
6-18 Chapter 26 Forms of Business Organization
2.ȱTheȱexecutorsȱareȱcorrect.ȱTheȱcourtȱruledȱthatȱtheȱdissolutionȱdateȱwasȱFebruaryȱ
Reteach
Theȱteacherȱwillȱhaveȱtoȱdetermineȱifȱtheȱstudentsȱareȱansweringȱcorrectlyȱinȱtheȱ
Enrichment Activity
Lessonȱ26—3ȱ
Quiz
11.ȱTheȱthreeȱpartnersȱshouldȱshareȱallȱtheȱprofitsȱequallyȱregardlessȱofȱtheȱtimeȱ
12.ȱLeonardoȱwouldȱbeȱcriminallyȱliable.ȱAllȱthreeȱpartnersȱandȱtheȱpartnershipȱ
Practice Activity
1.ȱYes,ȱCharlesȱwillȱbeȱliableȱforȱtheȱdebt.ȱCharlesȱarguedȱthatȱheȱshouldȱnotȱbeȱliȬ
ableȱbecauseȱheȱwasȱnotȱaȱpartnerȱduringȱtheȱtransaction.ȱTheȱcourtȱheldȱthatȱ
2.ȱYes,ȱtheȱpartnersȱwillȱbeȱliable.ȱTheȱClinicȱowedȱaȱdutyȱtoȱtheȱfamiliesȱofȱitsȱpaȬ
tientsȱtoȱexerciseȱordinaryȱcareȱtoȱpreventȱaȱtortiousȱinterferenceȱwithȱfamilyȱreȬ
Chapter 26 Forms of Business Organization
6-19
theȱpartnership.ȱHere,ȱhowever,ȱDr.ȱBrewerȱwasȱactingȱsolelyȱforȱhisȱownȱbeneȬ
Reteach
Enrichment Activity
Answersȱwillȱvary.ȱ
ȱ
ANSWERS TO TEST QUESTIONS
ȱ
SECTIONȱIIIȱ
6-20 Chapter 26 Forms of Business Organization
