Question 1

An ordinary partnership is also known as a(n)________.

Accepted Answer

The answer of An ordinary partnership is also known as...

Question 2

According to the RULPA, what liability does a corporation have if it is a general partner to a limited partnership?

Accepted Answer

A)  unlimited personal liability 
B)  liability restricted to debts up to its capital contributions 
C)  liability of termination as partner 
D)  unlimited organizational capital liability 
A)  unlimited personal liability 
B)  liability restricted to debts up to its capital contributions 
C)  liability of termination as partner 
D)  unlimited organizational capital liability

Question 3

The designation of ________ is used for businesses that are operating under a trade name.

Accepted Answer

doing busi

Question 4

A limited partnership has two types of partners, ________.

Accepted Answer

A)  general partners and sole proprietors 
B)  general partners and limited partners 
C)  ordinary partners and liable partners 
D)  special partners and sole proprietors 
A)  general partners and sole proprietors 
B)  general partners and limited partners 
C)  ordinary partners and liable partners 
D)  special partners and sole proprietors

Question 5

________ is a situation in which a partner withdraws from a partnership without having the right to do so at that time.

Accepted Answer

A)  Winding up 
B)  Indemnification 
C)  Wrongful dissolution 
D)  Proliferation 
A)  Winding up 
B)  Indemnification 
C)  Wrongful dissolution 
D)  Proliferation

Question 6

Orlando opened a hot dog stand in Brooklyn which unfortunately did not earn him a profit. He had borrowed $5,000 from the bank to set it up, which had to be repaid to the bank in two days. However, Orlando's friend Bob agreed to partner with him starting the subsequent month. From which of the following sources can the bank recover its $5,000 with interest?

Accepted Answer

A)  Orlando's secondary financer 
B)  Orlando's savings account 
C)  Orlando's family 
D)  Bob, Orlando's prospective business partner 
A)  Orlando's secondary financer 
B)  Orlando's savings account 
C)  Orlando's family 
D)  Bob, Orlando's prospective business partner

Question 7

How are assets distributed after the dissolution of a general partnership?

Accepted Answer

After partnership assets have been liqui

Question 8

Acting as a surety for the limited partnership makes a limited partner lose his or her limited liability.

Accepted Answer

A) True 
 B)False

Question 9

A sole proprietorship does not does not pay taxes at the business level.

Accepted Answer

A) True 
 B)False

Question 10

General partners are not permitted to sue other partners at law.

Accepted Answer

A) True 
 B)False

Question 11

According to priority, which of the following claims are satisfied first after dissolution?

Accepted Answer

A)  creditors 
B)  creditor-partners 
C)  capital contributions 
D)  profits 
A)  creditors 
B)  creditor-partners 
C)  capital contributions 
D)  profits

Question 12

No federal or state government approval is required for creating a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of the management of a general partnership?

Accepted Answer

A)  The number of votes a general partner has depends on the proportion of his or her capital investment. 
B)  Partnership matters are decided by unanimous agreement only. 
C)  Only general partners in the board of directors have the authority to participate in the management. 
D)  If the vote is tied, the action being voted on is considered to be defeated. 
A)  The number of votes a general partner has depends on the proportion of his or her capital investment. 
B)  Partnership matters are decided by unanimous agreement only. 
C)  Only general partners in the board of directors have the authority to participate in the management. 
D)  If the vote is tied, the action being voted on is considered to be defeated.

Question 14

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

Accepted Answer

A)  action for an accounting 
B)  indemnification 
C)  winding up 
D)  dissolution 
A)  action for an accounting 
B)  indemnification 
C)  winding up 
D)  dissolution

Question 15

Inference of the existence of a general partnership is drawn only if profits are received as ________.

Accepted Answer

A)  share in partnership 
B)  payment of wages 
C)  interest owed on a loan 
D)  a debt owed to a creditor 
A)  share in partnership 
B)  payment of wages 
C)  interest owed on a loan 
D)  a debt owed to a creditor

Question 16

Receipt of a share of business profits is prima facie evidence of a general partnership.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a cause for the dissolution of a partnership?

Accepted Answer

A)  written consent of the general partners 
B)  withdrawal of a general partner 
C)  withdrawal of all limited partners 
D)  acquisition of business by another partnership 
A)  written consent of the general partners 
B)  withdrawal of a general partner 
C)  withdrawal of all limited partners 
D)  acquisition of business by another partnership

Question 18

A sole proprietor has limited personal liability.

Accepted Answer

A) True 
 B)False

Question 19

The UPA is a model act that codifies sole proprietorship law.

Accepted Answer

A) True 
 B)False

Question 20

How long should a general partnership have existed for it to be in writing under the Statute of Frauds?

Accepted Answer

A)  six months 
B)  180 days 
C)  five years 
D)  one year 
A)  six months 
B)  180 days 
C)  five years 
D)  one year

Exam 14: Small Business and General and Limited Partnerships

An ordinary partnership is also known as a(n)________.

According to the RULPA, what liability does a corporation have if it is a general partner to a limited partnership?

The designation of ________ is used for businesses that are operating under a trade name.

A limited partnership has two types of partners, ________.

________ is a situation in which a partner withdraws from a partnership without having the right to do so at that time.

How are assets distributed after the dissolution of a general partnership?

Acting as a surety for the limited partnership makes a limited partner lose his or her limited liability.

A sole proprietorship does not does not pay taxes at the business level.

General partners are not permitted to sue other partners at law.

According to priority, which of the following claims are satisfied first after dissolution?

No federal or state government approval is required for creating a sole proprietorship.

Which of the following is true of the management of a general partnership?

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

Inference of the existence of a general partnership is drawn only if profits are received as ________.

Receipt of a share of business profits is prima facie evidence of a general partnership.

Which of the following is a cause for the dissolution of a partnership?

A sole proprietor has limited personal liability.

The UPA is a model act that codifies sole proprietorship law.

How long should a general partnership have existed for it to be in writing under the Statute of Frauds?

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