Question Tag: Advantages of Partnership

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BCL – Nov 2017 – L1 – Q7 – Alternative forms and constitutions of business organisations

Analyze the legality of a partnership's formation and the circumstances under which a partner may be expelled.

a) Kwasi Mensa, aged 21 years, Patience Adibu, aged 14 years, and Kojo Ntim, aged 20 years, agreed to form a partnership. Available information, however, showed that Kojo Ntim was admitted to a psychiatric hospital for 2 years and was later discharged. In the case of Kwasi Mensa, he was declared bankrupt after he could not meet his financial obligations to a company in which he had previously invested. The three, however, went ahead and formed a partnership known as KKK firm.

Required:
Explain whether the KKK firm was formed in accordance with law. (5 marks)

b) State the reasons for which the Courts may order the expulsion of a partner. (10 marks)

c) What advantages does a partnership have over a company? (5 marks)

(Total: 20 marks)

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BCL – Nov 2017 – L1 – Q7 – Alternative forms and constitutions of business organisations

Analyze the legality of a partnership's formation and the circumstances under which a partner may be expelled.

a) Kwasi Mensa, aged 21 years, Patience Adibu, aged 14 years, and Kojo Ntim, aged 20 years, agreed to form a partnership. Available information, however, showed that Kojo Ntim was admitted to a psychiatric hospital for 2 years and was later discharged. In the case of Kwasi Mensa, he was declared bankrupt after he could not meet his financial obligations to a company in which he had previously invested. The three, however, went ahead and formed a partnership known as KKK firm.

Required:
Explain whether the KKK firm was formed in accordance with law. (5 marks)

b) State the reasons for which the Courts may order the expulsion of a partner. (10 marks)

c) What advantages does a partnership have over a company? (5 marks)

(Total: 20 marks)

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