ZuoTi.Pro
Question

Stan is a managing partner in a successful business. However, he has been unable to pay...

Stan is a managing partner in a successful business. However, he has been unable to pay off his student loans, so he gives his transferable interest to the loan company instead. The other partners like Stan and want him to continue to manage the business on a daily basis. Can Stan remain as a partner?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As in the case of transferable interest to anyone, the person transferring such interest cannot be made to stop his business in which he have transferable interest.
He can only be stopped or made liable to stop whenever he makes any default in payment, due which he transferred such interest.
In simple words the person transferring any transferable interest can continue to do his usual business.


Now in the given case :

Stan is a managing partner in a successful business. However, he has been unable to pay off his student loans, so he gives his transferable interest to the loan company instead. The other partners like Stan and want him to continue to manage the business on a daily basis.

Conclusion : Yes, Stan can remain as a partner until he makes any default in payment of his loan to the loan company.
After the default is made, legal actions can be taken against Stan, and he would not be able to continue as a partner.

0 0
Add a comment
Know the answer?
Add Answer to:
Stan is a managing partner in a successful business. However, he has been unable to pay...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Bob graduated from college two years ago with a degree in communications. He has a good...

    Bob graduated from college two years ago with a degree in communications. He has a good job as a Communications Specialist making $50,000 a year. Because he took a basic financial class during his sophomore year of college, he understands the importance of creating a plan for his money. So he made it a priority to start saving, and he currently has a savings account of $5,000 built up. He’s motivated to continue putting away money for the future. However,...

  • Jared Jones has started a screen printing business. Because he is a private company he has...

    Jared Jones has started a screen printing business. Because he is a private company he has chosen not to use accrual based on accounting. In January of 2017 he decides to go to the bank and ask for a loan to finance the purchase of a large piece of machinery. He is able to show the bank a net income of $75,000 for the year ending December 31, 2016. Based on his income, and debt to asset ratio the bank...

  • Skip Stephens recently graduated from college with a degree I business administration. While attending college, Skip...

    Skip Stephens recently graduated from college with a degree I business administration. While attending college, Skip built up a large amount of debt, which currently includes student loans, outstanding credit card balances, bank loans, and so forth. Now that he has a good-paying job, Skip wants to clean up his debt position to improve his credit reputation so that he can qualify for a mortgage when he is ready to purchase a house in a few years. As a result...

  • QUESTION THREE Mark Abrahams is a partner at a law firm. He is 40 years old...

    QUESTION THREE Mark Abrahams is a partner at a law firm. He is 40 years old and unmarried. He has incurred a number of expenses during the 2019 year of assessment. He would like to know if they are deductible in the determination of his taxable income. These expenses are as follows: • A local newspaper published the names of what was believed to be a list of members of a club that was under examination by the police as...

  • QUESTION THREE Mark Abrahams is a partner at a law firm. He is 40 years old...

    QUESTION THREE Mark Abrahams is a partner at a law firm. He is 40 years old and unmarried. He has incurred a number of expenses during the 2019 year of assessment. He would like to know if they are deductible in the determination of his taxable income. These expenses are as follows: • A local newspaper published the names of what was believed to be a list of members of a club that was under examination by the police as...

  • Barry Greenstem, a partner at Homegrown Gardens, LLP has hired you, a fraud examiner, to do...

    Barry Greenstem, a partner at Homegrown Gardens, LLP has hired you, a fraud examiner, to do a preliminary investigation of his concerns that Betty Stevenson is accepting kickbacks. The red flags he identified are: 1) Homegrown pays higher prices to the wholesaler Monromio Nursery than other retailers do and 2) Betty appears to be living beyond her means. Barry wants you to do a preliminary investigation and to write a memo to him and the other partners. You determine that...

  • Questions: 1. How successful has Emilio been over the entire course of his career? What criteria...

    Questions: 1. How successful has Emilio been over the entire course of his career? What criteria do you use to measure career success? Award a number grade on a scale of one to ten. Explain your answer. 2. How well has Emilio responded to change? 3. How good of a job did ICL do in managing Emilio Kornau’s career? 4. Compare and contrast Emilio Kornau with Mark Margolis. How were the two men different? What were the impact of these...

  • Business Bob is a recognized french horn player. Bob has played for several major symphonies. Last...

    Business Bob is a recognized french horn player. Bob has played for several major symphonies. Last year Bob went through bankruptcy and in order to pay his rent for a couple of months took out loans from a small bank - Avarice Bank - and pledged his french horn as collateral. He was unable to make the first payment on the loan so the bank was getting ready to take the french horn for non-payment. Bob approached the director of...

  • After a successful first semester of operations, W.L. has been presented with two new opportunities. Two...

    After a successful first semester of operations, W.L. has been presented with two new opportunities. Two of his clients were so happy with the services he's provided them that they a like to contract with the company by scheduling standing appointments. One Clent, loco business, would like him to stop by daily to mail packages and take care of other errands Another client would like him to stop by twice per week to drop off and pick up dry cleaning...

  • Background Information Recently, there has been talk amongst the partners regarding the expansion of the business...

    Background Information Recently, there has been talk amongst the partners regarding the expansion of the business into the home construction business. Charles, Bob and Jane support the idea but Mary is totally opposed. Charles, Bob and Jane decide to buy out Mary for $25,000. Charles and Jane are each contributing $10,000 to the buyout and Bob is contributing $5,000. They intend to implement their expansion plans by purchasing a tract of land and building a small subdivision. A financial analysis...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT