Business Associations Q

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sknight323
Posts: 82
Joined: Tue Sep 28, 2010 3:39 am

Business Associations Q

Postby sknight323 » Sun Dec 09, 2012 3:25 pm

3 partners; one dies under RUPA. Going concern is worth 900k, if it were sold piece by piece, it would be worth 600k, and if it were sold intact to K, which wishes to buy it, then it is worth 750k.

How much does the partner who died get? These are the multiple choice answers.

(A) $300,000, the value of decedent's interest at the date of his death.

(B) amount in partnership account as of the date of his death

(C) Because the partnership cannot continue without decedent and could be sold to K, estate will receive $250,000.

(D) Because decedent's death disassociates him from the partnership, his estate will receive only $200,000.

My brain is fried and I'm stuck.

sconnielaw13
Posts: 167
Joined: Sat Sep 26, 2009 3:22 pm

Re: Business Associations Q

Postby sconnielaw13 » Sun Dec 09, 2012 3:46 pm

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Last edited by sconnielaw13 on Wed Jul 02, 2014 3:27 pm, edited 1 time in total.

sknight323
Posts: 82
Joined: Tue Sep 28, 2010 3:39 am

Re: Business Associations Q

Postby sknight323 » Sun Dec 09, 2012 4:34 pm

Thanks. Any idea on this?

6. Fox Corporation’s board approves the sale of substantially all of its property to Hound. As Fox is much larger than Hound, Hound will have to substantially increase its indebtedness. Nonetheless, Hound’s board also approves this acquisition.



(A) As this does not require a stock exchange, Fox’s shareholders do not have to approve it.

(B) As this decision may subject them to liability, Hound’s board will seek ratification by the majority of the minority shareholders.

(C) If Hound’s shareholders do not approve the transaction, it will be evaluated by the entire fairness standard.

(D) If Fox’s board seeks shareholder approval and the majority of the minority approve it, Fox’s board may refuse to complete the sale (without another shareholder vote).




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