Question

question 29 (2.5 points)
fact pattern 37 - 1
arlette, the owner of salad stop, rents space on the ground floor of a building to operate her business. arlette hires barbara to take and fill customers orders at an hourly wage of $15.00, plus tips. arlette and barbara are
a) not partners, because barbara does not have an ownership interest or management rights in salad stop.
b) not partners, because the pay includes an hourly wage.
c) not partners, because the pay is under a certain amount.
d) partners in a partnership.
question 30 (2.5 points)
delila is a limited partner in earth planters, an eco - friendly gardening service, organized as a limited partnership, which cannot pay its debts. delila is liable for the debts
a) to no extent.
b) to the full extent.

Explanation:

• Question 29:
• In a partnership, partners share ownership, management, and profits/losses. Barbara is an employee (paid an hourly wage + tips) and has no ownership or management rights in Salad Stop.
• Just because pay includes an hourly wage (option b) or is under a certain amount (option c) doesn't define a non - partnership. Option d is incorrect as they don't meet partnership criteria.
• Question 30:
• A limited partner in a limited partnership has limited liability. Their liability is generally limited to their investment in the partnership. So, Delila is liable to no extent (option a) for the partnership's debts beyond her investment (assuming she has not engaged in improper conduct that would pierce the limited liability shield).

Answer:

• Question 29: A. not partners, because Barbara does not have an ownership interest or management rights in Salad Stop.
• Question 30: A. to no extent.