Question 1

Explain the taxation levied on a sole proprietorship.

Accepted Answer

A sole proprietorship is not a separate

Question 2

In a sole proprietorship, the business is considered a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 3

List the advantages and disadvantages of a sole proprietorship.

Accepted Answer

There are several major advantages to op

Question 4

The sole proprietor has ________ liability.

Accepted Answer

A) zero personal 
B) limited organizational 
C) complete organizational 
D) unlimited personal 
A) zero personal 
B) limited organizational 
C) complete organizational 
D) unlimited personal

Question 5

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of general partnership?

Accepted Answer

A) A business should make a profit in order to qualify as a general partnership. 
B) The general partners need not be the co-owners of the business. 
C) General partnerships can be either oral or implied from the conduct of the parties. 
D) Charity organizations and schools are mostly formed from general partnerships. 
A) A business should make a profit in order to qualify as a general partnership. 
B) The general partners need not be the co-owners of the business. 
C) General partnerships can be either oral or implied from the conduct of the parties. 
D) Charity organizations and schools are mostly formed from general partnerships.

Question 7

A(n)________ is a partnership created for a fixed duration.

Accepted Answer

A) partnership for a term 
B) partnership at will 
C) ordinary partnership 
D) limited partnership 
A) partnership for a term 
B) partnership at will 
C) ordinary partnership 
D) limited partnership

Question 8

Instead of suing the partnerships or other partners at law, general partners are given the right to bring a(n)________ against other partners.

Accepted Answer

A) claim for damages 
B) tort action 
C) call for action 
D) action for an accounting 
A) claim for damages 
B) tort action 
C) call for action 
D) action for an accounting

Question 9

A sole proprietor has limited personal liability.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

General partners owe a duty to inform their co-partners of all information they possess that is relevant to the affairs of the partnership

Accepted Answer

A) True 
 B)False

Question 13

A(n)________ is the obligation partners owe to use the same level of care and skill that a reasonable person in the same position would use in the same circumstances.

Accepted Answer

A) call for action 
B) duty of care 
C) duty to inform 
D) duty of obedience 
A) call for action 
B) duty of care 
C) duty to inform 
D) duty of obedience

Question 14

________ 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 15

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

Accepted Answer

A) True 
 B)False

Question 16

Explain with an example the duty of care owed by a general partner.

Accepted Answer

A general partner must use reasonable ca

Question 17

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 18

The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is known as winding up.

Accepted Answer

A) True 
 B)False

Question 19

A breach of the duty of care by a partner does not constitute negligence.

Accepted Answer

A) True 
 B)False

Question 20

A trade name statement refers to a document that is filed with the state that designates a trade name of a business, the name and address of the applicant, and the address of the business.

Accepted Answer

A) True 
 B)False

Exam 34: Small Business, Entrepreneurship, and General Partnerships

Explain the taxation levied on a sole proprietorship.

In a sole proprietorship, the business is considered a separate legal entity.

List the advantages and disadvantages of a sole proprietorship.

The sole proprietor has ________ liability.

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit.

Which of the following is true of general partnership?

A(n)________ is a partnership created for a fixed duration.

Instead of suing the partnerships or other partners at law, general partners are given the right to bring a(n)________ against other partners.

A sole proprietor has limited personal liability.

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 ________.

General partners owe a duty to inform their co-partners of all information they possess that is relevant to the affairs of the partnership

A(n)________ is the obligation partners owe to use the same level of care and skill that a reasonable person in the same position would use in the same circumstances.

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

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

Explain with an example the duty of care owed by a general partner.

The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is known as winding up.

A breach of the duty of care by a partner does not constitute negligence.

A trade name statement refers to a document that is filed with the state that designates a trade name of a business, the name and address of the applicant, and the address of the business.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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