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The XYZ Partnership agreement provided that the business would exist for five years or until...

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Accounting

The XYZ Partnership agreement provided that the business would exist for five years or until the objective of the partnership was achieved, whichever occurred first. Four years and 11 months into the partnership, the partners held a meeting during which the future of the business was discussed; it was agreed that the objective had not been achieved but might possibly be accomplished if the business was continued for another year. Some of the partners encouraged a continuation of the business. What right does XYZ Partnership have to continue beyond the originally agreed date?

Note: This question may have more than one correct answer.\

.

a. If one of the partners agrees to handle the winding up, the partnership can continue.

b.Under operation of law, the general rule is that the partnership has no right to continue because of its terms.

c.The partnership has an unconditional right to continue if some of the partners desire.

d.If the partnership continues beyond the 5 year term, there must be a unanimous agreement of the partners.

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