Exam 14: Small Business, General Partnerships, and Limited Partnerships

Jonathan Lopez wants to be his own boss and ventures into retailing fruit in the neighborhood after borrowing some money from his mother.While obtaining a license to carry out business in his city,Jonathan mentions the money he borrowed but forgets to specify what type of business undertaking his store will be.Under which of the following major forms of business is Jonathan's store listed by default?

Defective formation of a limited partnership occurs when a certificate of limited partnership is not properly filed.

General partners are not personally liable for partnership debts beyond their capital contributions.

Which of the following is true of a sole proprietorship?

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

General partners have unlimited personal liability for the debts and obligations of the partnership.

Why does a sole proprietorship not pay taxes at the business level?

Which of the following partners of a limited partnership invests capital but does not participate in management?

Explain the formation of a general partnership.

General partners are not permitted to sue the partnership or other partners at law.

A limited partnership cannot have general partners.

________ is said to have occurred if a certificate of limited partnership was not properly filed.

If no other form of business organization is chosen while obtaining a license,the business is by default a sole proprietorship.

List the advantages and disadvantages of a sole proprietorship.

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

The dissolution of a general partnership discharges the liability of an outgoing partner for existing partnership debts and obligations.

Which of the following is true in the creation of a general partnership?