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NEW QUESTION: 1
Downs, Frey, and Vick formed the DFV general partnership to act as manufacturers' representatives. The
partners agreed Downs would receive 40% of any partnership profits and Frey and Vick would each
receive 30% of such profits. It was also agreed that the partnership would not terminate for five years.
After the fourth year, the partners agreed to terminate the partnership. At that time, the partners' capital
accounts were as follows: Downs, $20,000; Frey, $15,000; and Vick, $10,000. There also were
undistributed losses of $30,000.
Which of the following statements about the form of the DFV partnership agreement is correct?
A. It must be in writing because partnership profits would not be equally divided.
B. It must be in writing because the partnership was to last for longer than one year.
C. It could be oral because the partnership did not deal in real estate.
D. It could be oral because the partners had explicitly agreed to do business together.
Answer: B
Explanation:
Choice "a" is correct. Under the statute of frauds, an agreement, which by its terms cannot be performed
within a year, must be evidenced by a writing containing the material terms and signed by the parties to
be charged. Absent a writing, the partnership will be treated as a partnership at will. Choice "b" is incorrect.
There is no requirement that partnership agreements be in writing merely because profits will be divided
unequally. Choice "c" is incorrect. The statute of frauds requires contracts that cannot by their terms be
performed within one year to be evidenced by a writing containing the material terms and signed by the
parties to be charged. Choice "d" is incorrect. Whether or not a partnership is to deal in real estate is
irrelevant to whether the partnership agreement must be in writing.
NEW QUESTION: 2
An enterprise wants to absorb the uncertainty caused by fluctuating demand for a finished product by means of a buffer variable in SAP ECC. They suggest a dynamic safety stock.
What specifications are used to calculate the dynamic safety stock?
A. The average daily demand and the safety time
B. The static safety stock and a material forecast
C. The static safety stock per day and the safety time
D. The average daily demand and the desired days supply
Answer: D
NEW QUESTION: 3
A. Option B
B. Option D
C. Option A
D. Option C
Answer: A