Response to the following questions:
1. Can partners limit the right of a partner to commit their partnership to contracts? Would such an agreement be binding (a) on the partners and (b) on outsiders?
2. After all partnership assets have been converted to cash and all liabilities paid, the remaining cash should equal the sum of the balances of the partners' capital accounts. Why?
3. Assume a partner withdraws from a partnership and receives assets of greater value than the book value of his equity. Should the remaining partners share the resulting reduction in their equities in the ratio of their relative capital balances or according to their income-and-loss-sharing ratio?