- July 4, 2022 at 2:35 am #659867
Which one of the following is not an automatic ground for the dissolution of a limited partnership?
a. the inability of a partner to perform her share of the partnership agreement
b. insolvency of a junior partner
c. the unsuccessful conclusion of a joint venture
d. sending notice to all partners in a partnership at will.
Good day sir,I don’t understand why the answer is A. I’ll appreciate if you can appreciate better.July 4, 2022 at 6:23 am #659873
Options B, C and D are all matters of fact … whereas option A is a matter of opinion
Facts are indisputable but the opinion of one (or many) person(s) can be claimed to be unfair / biased
Mind you, in America, the fact that Biden won their election and defeated Donald (the Jenius) Trump is apparently claimed to be inaccurate
Thank Heavens that I don’t live in USAJuly 4, 2022 at 4:41 pm #659916
Thank you sir.Can you please explain what option C means?July 4, 2022 at 8:09 pm #659949
Yes! By definition a joint venture is a partnership for a limited purpose, course of adventure or voyage
You and I could enter into a joint venture specifically to buy a yacht, sail it to the West Indies and sell it. You would buy the boat, I would do the sailing bit, buy the food and supplies necessary, and find and pay the crew members
When we sell the boat for a stonking profit, we work out how much profit we have made by comparing ALL our costs with the sale value of the boat, divide the profit and credit each share to our separate accounts and then divi up the money according to our individual balances
But then, our ‘partnership for a limited purpose, course of adventure or voyage would be over and our business relationship, our joint venture, is finished
That example would be for a successful joint venture. But if we were to enter an arrangement (for a limited purpose, course of adventure or voyage) and it was unsuccessful, then, on the conclusion of that failed enterprise, our venture would automatically be over – and thus our partnership for a limited purpose, course of adventure or voyage (our joint venture) would be automatically terminated
Does that help?July 4, 2022 at 11:51 pm #659967
Yes sir,it does.Thank youJuly 5, 2022 at 6:31 am #659971
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