Exam 26: Small Business, Entrepreneurship, and Partnerships

Peter,Paul and Mary have agreed to be general partners to purchase and rehabilitate a dilapidated home,which they plan to renovate and then resell.Peter and Paul each put in 30%,and Mary contributes 40%,of the financial capital.Which of the following is a true statement?

An inference of the existence of a general partnership is drawn if profits are received in payment of wages owed to an employee.

Where there is no agreement in a limited partnership regarding the allocation of profits,how are they allocated?

Limited partnerships are used for such business ventures as investing in real estate,drilling oil and gas wells,and investing in movie productions.

What is true about a partner's right to participate in the management of the partnership?

Which of the following is true about the Uniform Partnership Act?

Manny,Moe and Jack form a general partnership to operate a flower shop.After three years,the business has gone so well that they have expanded to twenty-four profitable shops.Each is married with children.Suddenly,Jack died.What happens to the partnership,the assets and the profits of the business?

Most states do not restrict the use of limited liability partnerships to certain types of professionals.

Under what circumstances is a proprietorship required to file a "fictitious business name" statement?

In the absence of an agreement to the contrary,all general partners have a(n)________ right to participate in the management of the general partnership business.

Which of the following statements is true concerning the notice that must be given to third parties upon partnership dissolution?

Limited partners can lose their limited liability protection if they actively participate in management of the partnership.

"Certificate of limited partnership" and "articles of limited partnership" are synonymous terms referring to the same document.

Limited partners invest capital,manage the business,and are personally liable for partnership debts.

The purpose of a fictitious business name statement is to reduce a proprietor's personal liability for debts and other legal obligations incurred by the business.

Why should partners in a general partnership be held personally liable for the debts of the partnership and any wrongdoing committed by another partner in the course and scope of the partnership?

A fictitious business name statement is optional in the states that recognize them.

In a limited partnership,the partners can agree that all partners have limited liability.

Entrepreneurs can either start a business by themselves,or they can pool their resources with others in order to start a business.

Under the Revised Uniform Limited Partnership Act,as a matter of law,defective formation of a limited partnership would not affect the liability of a limited partner.