Exam 30: Formation and Internal Relations of General Partnerships

Which of the following would lack the capacity to become a partner?

What is an assumed name statute? Why have many states adopted such statutes?

Under the RUPA, a partnership agreement may be written or oral, but not implied.

A distribution in a partnership may be:

Absent an agreement otherwise, upon dissolution, a partner is entitled to which of the following after payment of partnership creditors?

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.They each work two days a week.Donations fund the day-to-day operations.Do they have a partnership?

Partners may elect to have the partnership not be a separate taxable entity, so that only the partners are taxed.

All 50 states have adopted the Revised Uniform Partnership Act.

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

Co-ownership of the means or instrumentality of accomplishing a single business transaction or a limited series of transactions ordinarily results in a:

A business trust, also called a Massachusetts trust, was devised to avoid burdens of corporate regulation, but it is no longer in use today.

A partner who has no right to participate in control of the business and who has limited liability is a:

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

In all types of business entities, the owners can fully share in the management and control of the business.

A distinguishing characteristic of a business trust is that:

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.

Drew, Elmer, and Frank are partners in the DEF partnership.The partnership is being dissolved.It has $200,000 in cash assets and it owes $410,000 to creditors.Profits and losses of the partners are shared equally, although Drew contributed $100,000 in capital; Elmer contributed $50,000 in capital; and Frank contributed $25,000 in capital.Which of the following is correct with regard to the responsibility of each partner?

Which of the following expresses the right one has to choose her partners?

Under the RUPA, a loan from a partner to the partnership is treated the same as loans of a person not a partner, subject to:

Under the RUPA, a partner must manage the partnership affairs without duty of care.