Question 1

Under the UPA,general partners have joint and several liability for torts and breaches of trust.

Accepted Answer

A) True 
 B)False

Question 2

While claiming under ________,a plaintiff must name the partnership and all of the partners as defendants in a lawsuit.

Accepted Answer

A)  multiple liability 
B)  joint liability 
C)  limited liability 
D)  unlimited personal liability 
A)  multiple liability 
B)  joint liability 
C)  limited liability 
D)  unlimited personal liability

Question 3

Competing with the partnership without the permission of other partners violates a general partner's ________.

Accepted Answer

A)  duty to inform 
B)  duty of loyalty 
C)  duty of care 
D)  duty of obedience 
A)  duty to inform 
B)  duty of loyalty 
C)  duty of care 
D)  duty of obedience

Question 4

Why is a sole proprietorship considered to be the simplest form of business organization? Discuss the advantages and disadvantages of a sole proprietorship.

Accepted Answer

A sole proprietorship is the simplest fo

Question 5

An admission of a new general partner is effective when an amendment of the certificate of limited partnership reflecting that fact is filed.

Accepted Answer

A) True 
 B)False

Question 6

The corollary to the rule of right to information is that each partner has a duty to provide such information upon the receipt of a reasonable demand.

Accepted Answer

A) True 
 B)False

Question 7

Upon the death of a partner,the deceased partner's right in specific partnership property ________.

Accepted Answer

A)  vests in the remaining partner or partners 
B)  vests in his or her heirs or next of kin 
C)  is held in trust for the deceased's heirs or next of kin until the last remaining partner dies 
D)  is forfeited upon his or her death 
A)  vests in the remaining partner or partners 
B)  vests in his or her heirs or next of kin 
C)  is held in trust for the deceased's heirs or next of kin until the last remaining partner dies 
D)  is forfeited upon his or her death

Question 8

An inference of the existence of a general partnership is drawn if profits are received in payment of a debt owed to a creditor in installments or otherwise.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  All third parties must receive actual notice. 
B)  All third parties must receive the constructive notice. 
C)  Third parties who have directly dealt with the partnership must receive constructive notice. 
D)  Third parties who have not dealt with the partnership, but who know of its existence, must receive constructive notice. 
A)  All third parties must receive actual notice. 
B)  All third parties must receive the constructive notice. 
C)  Third parties who have directly dealt with the partnership must receive constructive notice. 
D)  Third parties who have not dealt with the partnership, but who know of its existence, must receive constructive notice.

Question 10

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 11

General partners have ________ for the debts and obligations of the partnership.

Accepted Answer

A)  limited exemption 
B)  conditional exemption 
C)  limited organizational liability 
D)  unlimited personal liability 
A)  limited exemption 
B)  conditional exemption 
C)  limited organizational liability 
D)  unlimited personal liability

Question 12

A general partnership need not file a fictitious business name statement to operate under a trade name.

Accepted Answer

A) True 
 B)False

Question 13

Why is it a good practice for partners to put their partnership agreement in writing?

Accepted Answer

The agreement to form a general partners

Question 14

Which of the following is a consequence of failing to give adequate notice of partnership dissolution to third parties?

Accepted Answer

A)  The partnership's attempted dissolution will be ineffective. 
B)  The partners will be prevented from receiving their share of partnership assets. 
C)  There will be a court-ordered waiting period before partners can receive their share of partnership assets. 
D)  Partners might be personally liable for transactions entered into by other partners occurring after the partnership dissolution. 
A)  The partnership's attempted dissolution will be ineffective. 
B)  The partners will be prevented from receiving their share of partnership assets. 
C)  There will be a court-ordered waiting period before partners can receive their share of partnership assets. 
D)  Partners might be personally liable for transactions entered into by other partners occurring after the partnership dissolution.

Question 15

Which of the following statements is true of a sole proprietorship?

Accepted Answer

A)  A business operated under sole proprietorship cannot be transferred. 
B)  Large businesses cannot be operated under sole proprietorship. 
C)  A business operated under sole proprietorship should be owned by one or more people of the same family. 
D)  Creditors can recover claims against the business from the sole proprietor's personal assets. 
A)  A business operated under sole proprietorship cannot be transferred. 
B)  Large businesses cannot be operated under sole proprietorship. 
C)  A business operated under sole proprietorship should be owned by one or more people of the same family. 
D)  Creditors can recover claims against the business from the sole proprietor's personal assets.

Question 16

General partnerships are liable to pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 17

A sole proprietorship is considered a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 18

An association of two or more persons to carry on as co-owners of a business for profit is known as a ________.

Accepted Answer

A)  limited partnership 
B)  sole proprietorship 
C)  corporation 
D)  general partnership 
A)  limited partnership 
B)  sole proprietorship 
C)  corporation 
D)  general partnership

Question 19

The duty of loyalty is imposed by law and cannot be waived.

Accepted Answer

A) True 
 B)False

Question 20

A partner is entitled to repayment of the loan,but this right is subordinated to the claims of creditors who are not partners.

Accepted Answer

A) True 
 B)False

Exam 26: Small Business, Entrepreneurship, and Partnerships

Under the UPA,general partners have joint and several liability for torts and breaches of trust.

While claiming under ________,a plaintiff must name the partnership and all of the partners as defendants in a lawsuit.

Competing with the partnership without the permission of other partners violates a general partner's ________.

Why is a sole proprietorship considered to be the simplest form of business organization? Discuss the advantages and disadvantages of a sole proprietorship.

An admission of a new general partner is effective when an amendment of the certificate of limited partnership reflecting that fact is filed.

The corollary to the rule of right to information is that each partner has a duty to provide such information upon the receipt of a reasonable demand.

Upon the death of a partner,the deceased partner's right in specific partnership property ________.

An inference of the existence of a general partnership is drawn if profits are received in payment of a debt owed to a creditor in installments or otherwise.

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

General partners have ________ for the debts and obligations of the partnership.

A general partnership need not file a fictitious business name statement to operate under a trade name.

Why is it a good practice for partners to put their partnership agreement in writing?

Which of the following is a consequence of failing to give adequate notice of partnership dissolution to third parties?

Which of the following statements is true of a sole proprietorship?

General partnerships are liable to pay federal income taxes.

A sole proprietorship is considered a separate legal entity.

An association of two or more persons to carry on as co-owners of a business for profit is known as a ________.

The duty of loyalty is imposed by law and cannot be waived.

A partner is entitled to repayment of the loan,but this right is subordinated to the claims of creditors who are not partners.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

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Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

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