This lesson introduces the student to the management and financial rights of partners of an ongoing partnership. Other lessons cover the information and indemnification rights of partners and the rights of partners during the process of dissolving a partnership. Before starting this lesson, students should have completed the basic lessons on partnership formation.
On completion of the lesson, the student will be able to:
1. Explain the difference between mandatory rules and default rules in the Uniform Partnership Acts.
2. Describe how the partnership default rules determine the value of the partners' capital accounts.
3. Describe how voting rights are allocated under the partnership act default rules.
4. Describe how profit sharing is determined under the partnership act default rules.
5. Describe how sharing of partnership losses is determined under the partnership act default rules.
6. Describe how additional contributions of partners are dealt with under the partnership act default rules.
7. Define the rights partners have to transfer their financial interests in the partnership.