COMM231 Chapter 14: Comm-231-Chapter-14-Notes-Cont.docx
19 Apr 2015
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Partnerships: must file declaration of partnership (incl. names, info, and duration of partnership) failure to file this can lead to fines. Partner is an agent of the firm she acts for herself and her partners. Firm is responsible for contracts she enters into w/ actual or apparent authority. Partnership act makes partners responsible for each other"s mistakes joint and several liability. Joint and several liability: individual and collective liability for a debt. Each liable party is individually responsible for the entire debt as well as being collectively liable for the entire debt. Agreements can be drafted so that the even if certain partners want to leave, their assets can be transferred, and partnership b/w other partners will remain in place. If partnership ends and they owe debts company property will be used to pay first, then partners will individually contribute to the debt. If partnership ends: repay loans to partners, repay capital to partners, pay profit to partners.
