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Rules of Management

The document discusses rules of management for partnerships. It provides examples of decisions around hiring for roles in the partnership and whether capitalist or industrial partners' decisions prevail. It also discusses what happens if partners conduct business individually that is similar to the partnership's business.

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darlene flores
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75 views1 page

Rules of Management

The document discusses rules of management for partnerships. It provides examples of decisions around hiring for roles in the partnership and whether capitalist or industrial partners' decisions prevail. It also discusses what happens if partners conduct business individually that is similar to the partnership's business.

Uploaded by

darlene flores
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Rules of management

1. W, X, Y and Z organized a general partnership with W and X as industrial partners and Y


and Z as capitalist partners. Y contributed P.5 M and Z contributed P.2 M to the common
fund. By a vote of the partners, W and X were appointed managing partners, without
specification of their duties and powers. A applied as secretary and B applied as
accountant of the partnership. Suppose the hiring of B was decided upon by W and Z,
but was opposed by X and Y, whose decision shall prevail?
The decision of X and Y because in case of tie in the decision of managing partners, that
of the controlling interest shall prevail.
2. A is a capitalist partner and B the industrial one. B engages in business on his own
account but different from that of the partnership.
B may be excluded from the partnership with damages.
3. W, X, Y and Z organized a general partnership with W and X as industrial partners and Y
and Z as capitalist partners. Y contributed P.5 M and Z contributed P.2 M to the common
fund. By a vote of the partners, W and X were appointed managing partners, without
specification of their duties and powers. A applied as secretary and B applied as
accountant of the partnership. The hiring of A was decided upon by W and X but was
opposed by Y and Z. Whose decision shall prevail?
The decision of W and X shall prevail because the hiring is an act of management and
as managers they can do so.
4. A is a capitalist partner and B the industrial one. A engaged personally in the same kind
of Dusiness as that of the partnership:
If there are profits, A shall give them to the partnership.
5. A is the managing partner of A and B company. X is indebted to A for P20, 000 and the
partnership for P60, 000. When both debts mature, X pays A P20, 000 and the latter
issues a receipt for his personal credit. The payment for P20, 000 shall be applied:
1/4 in favor of A and 3/4 in favor of partnership.
6.

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