Exam 30: Formation and Internal Relations of General Partnerships

In some corporations,only the shareholders are taxed;in others,both the corporation as an entity is taxed and the shareholders are taxed as well.

Terry and Ernest agree to become partners in advertising and promoting the Midway Fair to be held three years hence.If they agree orally,will the partnership agreement be enforceable?

Which of the following is the correct definition for a partnership?

General Widget partnership assets amount to $34,000 after liquidation.Frank,Gene,and Hank,equal partners,each contributed $3,000 into the capital pool at the inception of the business.Gene later loaned the business $5,000.They owe $23,000 to creditors for inventory.What will Gene get in distribution,assuming there is no agreement on the distribution of profits?

Under the common law,a partnership is generally considered to be a legal entity rather than an aggregate of individuals.

If no specific agreement exists,the partners bear losses in the same proportion in which they share profits.

Tori and Margaret agree to form a partnership.The partnership contract between Tori and Margaret does not have to be in writing in order to be enforceable in the courts.

A partner cannot assign his interest in the partnership without dissolving the partnership.

Which of the following would be the most convincing evidence of a partnership?

A general partnership may be formed for a charitable purpose.

Which of the following would lack the capacity to become a partner?

Under the RUPA,a partner must manage the partnership affairs without ____ negligence to avoid violation of the duty of care.

Co-ownership of the means or instrumentality of accomplishing a single business transaction or a limited series of transactions ordinarily results in a:

Sue,Barb,and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.They each work two days a week.Donations fund the day-to-day operations.Do they have a partnership?

A limited liability company (LLC)provides limited liability to all of its owners and permits all of its owners to participate in management.

Because the statute of frauds does not apply expressly to a contract for the formation of a partnership,usually no writing is required to create the relationship.

A ____ is an unincorporated business association consisting of at least one general partner and at least one limited partner.

In all types of business entities,the owners can fully share in the management and control of the business.

Identify six rights the law provides to partners.

What is considered "partnership property" is determined primarily by the partners' intentions.