What is partnership dissolution? - the change in the relationship of the
partners - ends association of individuals but not necessarily mean end of business operation What are the causes of dissolution? 1. Without violation of the agreement between partners 2. With violation of agrement 3. By any event that makes it unlawful for the business/partners to continue 4. When a thing perishes/is lost before partnership has acquired ownership 5. Death of any partner 6. Insolvency of any partner/partnership 7. Civil interdiction of any partner 8. Decree of court
When will a partnership be - by termination of the definite term
determinated without violation of the - by the express will of any partner agreement? - by the express will of all partners - by expulsion of any partner What happens after dissolution? Dissolution dissolves the old parntership but the business continues under a new partnership agreement What 2 ways can a new partner be 1. by purchase of interest accepted? 2. by investment What does it mean when you say a it is built upon the mutual trust and partnership relationship is 'fiduciary'? confidence of all partners among each other How must an incoming and existing current market value/fair value parnter's asset be stated? What is bonus? the amount of capital or equity by one partner transferred to another, with no cash consideration, for the good reputation, industry and/or business advantage of the latter What can bonus also represent? capital credit given to a partner for his/her distinct know-how or special service which is available only to the partnership What happens if the total agreed - recognition of bonus capital is EQUAL to the total - bonus to old/new partners contributed capital? What happens if the total agreed - recognition of undervalued asset or capital is GREATER than the total revaluation increase of an existing asset contributed capital? What happens if the total agreed - recognition of overvalued asset or capital is LOWER than the total revaluation decrease of an existing asset contributed capital What happens if a new partner's - any difference is attributable to bonus contributed capital is LESS than their to new partner agreed capital? What happens if a new partner's - any difference is attributable to bonus contributed capital is GREATER than to old partners their agreed capital? What happens if the problem is silent? the total agreed capital is equal to total contributed capital