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    Personal Finance Chapter 21

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    CHAPTER 21 PARTNERSHIPS TRUE/FALSE 1. Unlike a subchapter C corporation‚ a partnership is subject to only one level of taxation and can often liquidate in a tax-deferred manner. ANS: T A partnership is a flow-through entity subject to only one level of taxation. Liquidation of the partnership is generally tax-deferred. PTS: 1 REF: p. 21-2 | p. 21-3 2. Section 721 provides that no gain or loss is recognized on contribution of property to a partnership in exchange for an interest in

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    Dissolution and Winding Up

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    DISSOLUTION AND WINDING UP DISSOLUTION - change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the business; partnership is not terminated but continues until the winding up of partnership affairs is completed WINDING UP - process of settling the business or partnership affairs after dissolution CAUSES OF DISSOLUTION: 1. Without violation of the agreement between the partners a. By termination of the definite term/ particular undertaking

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    Articles 1817-1841

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    but valid among the partners. Art. 1818. Every partner is an agent of the partnership for the purpose of its business‚ and the act of every partner‚ including the execution in the partnership name of any instrument‚ for apparently carrying on in the usual way the business of the partnership of which he is a member binds the partnership‚ unless the partner so acting has in fact no authority to act for the partnership in the particular matter‚ and the person with whom he is dealing has knowledge

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    27e Chapter C9 Partnership Formation and Operation 1) Formation of a partnership requires legal documentation filed with the Secretary of State. Answer: FALSE Page Ref.: C:9-2 Objective: 1 2) A partner’s basis for his partnership interest can be negative. Answer: FALSE Page Ref.: C:9-5 Objective: 1 3) The holding period of a partnership interest acquired in exchange for a contributed capital asset begins on the date the partner transfers the asset to the partnership. Answer: FALSE Page

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    Law prelim exam

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    Art. 1767 - By the contract of partnership two or more persons bind themselves to contribute money‚ property‚ or industry to a common fund‚ with the intention of dividing the profits among themselves. - Two or more persons may also form a partnership for the exercise of a profession. Partnership: A partnership is a joint undertaking profit and loss A partnership is the status arising out of a contract entered into by two or more persons whereby they agree to share as common owners

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    THE CIVIL CODE OF THE PHILIPPINES Title IX. - PARTNERSHIP CHAPTER 4 LIMITED PARTNERSHIP (n) Art. 1843. A limited partnership is one formed by two or more persons under the provisions of the following article‚ having as members one or more general partners and one or more limited partners. The limited partners as such shall not be bound by the obligations of the partnership. Art. 1844. Two or more persons desiring to form a limited partnership shall: (1) Sign and swear to a certificate‚ which

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    IAS 20

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    Partnership Partnership is a long-term commitment to operate in business together. The people who own a partnership are called partners. They maintain one set of accounting records and share the profits and losses. Nature of Partnership 1. It is formed to make profits 2. It must obey the law as given in the Partnership Act 1890. If there is a limited partner‚ it must also comply with the Limited Partnership Act of 1907. 3. Normally there can be a minimum of two partners and a maximum of

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    Aggregate vs. Entity Approach 1. Aggregate approach:  the partnership as a separate entity is disregarded and each partner is viewed as directly owning an undivided interest in the partnership’s assets operations. If the tax law used only aggregate concepts‚ the partnerships and their partners would be treated: - Each partner would be taxed on share of partnership income and would be viewed as owning a direct interest in each partnership asset. - Contributions and distributions would be viewed

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    1.2 Advantages and Disadvantages of private/public sector partnership. Introduction The effective management of tourism at destination level can only truly be achieved through partnership‚ due to the number and complexity of stakeholders. For a long time‚ national and local governments have talked about partnership as a means to increase joined-up thinking and public/private sector involvement. The tourism sector‚ because of the nature of the work in engaging the private sector and working across

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    Nerd

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    Partnership Advantages and Disadvantages There are distinct partnership advantages and disadvantages. Before going into partnership advantages and disadvantages and especially before starting a partnership‚ let’s first define "partnerships" and make sure we know how they operate. The particular rules about partnerships lead to the partnership advantages and disadvantages. Partnerships Defined and Explained A partnership is an agreement between two or more people to finance and operate a business

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