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A and B were partners. A being the managing partner invited C to associate with him in his a share in the partnership. What are the right of the partners?

a. A may have C an associate in his share even without B's consent.
b. A may not have C as an associate because he is already B's partner.
c. C may become a partner upon invitation of A, the managing partner.
d. B may refuse to accept C as A's associate due to conflict of interest.

User Umps
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1 Answer

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Final answer:

In a general partnership, all partners typically must agree to the addition of new partners; A cannot unilaterally have C as an associate. The benefits of partnerships include ease of management, the ability to attract investors, and no special taxes.

Step-by-step explanation:

When it comes to a general partnership, it involves two or more people who share responsibility and risk while managing and owning a business. Each partner contributes to all aspects of the business, including decision-making, and profits are shared among partners. It is important to note that adding a new partner generally requires the consent of all existing partners, unless the partnership agreement states otherwise.

If partner A wishes to have C associate with his share in the partnership without B's consent, it violates the typical agreement in a general partnership, where all partners must agree to changes in the structure of the partnership, including the addition of new partners. Therefore, A may not unilaterally have C as an associate in his share, and B may have grounds to refuse C as an associate, especially if there is a conflict of interest or the partnership agreement so provides.

In terms of the potential benefits of a partnership, they are easy to manage, can readily attract investors, and enable the hiring of additional employees. They also benefit from not having special taxes like corporations and having a simple set-up process with a partnership agreement.

User Valdet
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