Question 1

A partnership name may be the name of all the partners,some of them or any one of them.

Accepted Answer

A) True 
 B)False

Question 2

Arthur,Betty,and Clara each inherit an undivided one-third of an apartment complex.Instead of selling it,they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money.What are they?

Accepted Answer

A)  A partnership 
B)  Co-owners only 
C)  A corporation 
D)  Tenants in common 
A)  A partnership 
B)  Co-owners only 
C)  A corporation 
D)  Tenants in common

Question 3

The newly formed Tavin and Shane Partnership cannot commence business until it meets its state's required minimum amount of capitalization.

Accepted Answer

A) True 
 B)False

Question 4

The UPA grants each partner the right to an account whenever:

Accepted Answer

A)  his partners wrongfully exclude him from the partnership business. 
B)  a partner makes a profit in violation of his fiduciary duty. 
C)  circumstances render it just and reasonable. 
D)  All of these are reasons a parter may demand an account. 
A)  his partners wrongfully exclude him from the partnership business. 
B)  a partner makes a profit in violation of his fiduciary duty. 
C)  circumstances render it just and reasonable. 
D)  All of these are reasons a parter may demand an account.

Question 5

The UPA was amended in 2016 as part of the Bring Harmony to Business Act.

Accepted Answer

A) True 
 B)False

Question 6

In deciding whether property owned by a partner before formation of the partnership and used in the business is a capital contribution that belongs to the firm,a court will consider which of the following?

Accepted Answer

A)  Whether the property was improved with partnership funds 
B)  Whether the property was carried on the books of the partnership as an asset 
C)  Admissions or declarations of the partners 
D)  All of these would be considered. 
A)  Whether the property was improved with partnership funds 
B)  Whether the property was carried on the books of the partnership as an asset 
C)  Admissions or declarations of the partners 
D)  All of these would be considered.

Question 7

The Oak Grove Partnership decided it would buy personal computers for use by each partner.Cromwell,a partner,had an ownership interest in a computer store.He thought he could get the computers for the partnership at the best price because of his inside position,and he told his partners at Oak Grove about his position.He did obtain eight computers for $150 over manufacturer's price,which was $250 less per computer than the next lowest bid.What consequence?

Accepted Answer

A)  There was a sale,but no profit to the computer store. 
B)  There was a sale,but the computer store would only receive a percentage of the profit equal to Cromwell's ownership interest in the store and the partnership would receive the balance. 
C)  There was a sale,and the computer store would receive the profit of $150 per computer. 
D)  There would be no sale,because Cromwell had an interest in both businesses. 
A)  There was a sale,but no profit to the computer store. 
B)  There was a sale,but the computer store would only receive a percentage of the profit equal to Cromwell's ownership interest in the store and the partnership would receive the balance. 
C)  There was a sale,and the computer store would receive the profit of $150 per computer. 
D)  There would be no sale,because Cromwell had an interest in both businesses.

Question 8

A sole proprietorship is formed without any formality,is not a separate taxable entity,is dissolved upon death of the owner,and has unlimited liability for the owner.

Accepted Answer

A) True 
 B)False

Question 9

Juan,a partner in the Bell Partnership,in violation of a specific term in the partnership agreement restricting the extension of credit of more than $5,000 without the written consent of all the partners,extends credit of $6,500 to Brittany.Juan has violated the duty of:

Accepted Answer

A)  obedience,and he can be held personally liable to his partners for any unpaid portion of the $6,500. 
B)  obedience,but he cannot be held personally liable for the unpaid portion of the debt. 
C)  care because he owed the partnership a duty to act in good faith. 
D)  loyalty,and he is therefore personally liable to the partnership for $6,500. 
A)  obedience,and he can be held personally liable to his partners for any unpaid portion of the $6,500. 
B)  obedience,but he cannot be held personally liable for the unpaid portion of the debt. 
C)  care because he owed the partnership a duty to act in good faith. 
D)  loyalty,and he is therefore personally liable to the partnership for $6,500.

Exam 30: Formation and Internal Relations of General Partnerships

A partnership name may be the name of all the partners,some of them or any one of them.

Arthur,Betty,and Clara each inherit an undivided one-third of an apartment complex.Instead of selling it,they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money.What are they?

The newly formed Tavin and Shane Partnership cannot commence business until it meets its state's required minimum amount of capitalization.

The UPA grants each partner the right to an account whenever:

The UPA was amended in 2016 as part of the Bring Harmony to Business Act.

In deciding whether property owned by a partner before formation of the partnership and used in the business is a capital contribution that belongs to the firm,a court will consider which of the following?

A sole proprietorship is formed without any formality,is not a separate taxable entity,is dissolved upon death of the owner,and has unlimited liability for the owner.

Juan,a partner in the Bell Partnership,in violation of a specific term in the partnership agreement restricting the extension of credit of more than $5,000 without the written consent of all the partners,extends credit of $6,500 to Brittany.Juan has violated the duty of:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

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Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

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Consideration

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Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

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Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

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Introduction to Property,property Insurance,bailments,and Documents of Title

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Legal Terminology: Understanding Criminal and Civil Law Systems

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Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

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