Exam 28: Types of Business Organizations

Each partner has the right to complete information concerning all aspects of partnership business.

Del owns Everlast Painting, a sole proprietorship. Del's liability is

Fact Pattern 28-1 Ann starts up Bowls Bistro to sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years. Ann hires Demi to take and fill customers' orders at an hourly wage of $15.00, plus tips. Refer to Fact Pattern 28-1. Ann and Carly are

In a limited partnership, a limited partner assumes no liability for partnership debts beyond the amount of capital contributed.

Partnership profits are distributed in proportion to partners' tenure and seniority.

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit for herself. To her firm, Nora is liable for

A foreign investor cannot be a member of a limited liability company.

Sam and Terry agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

The sharing of profits from ownership of property proves the existence of a partnership.

Members of a limited liability company are not allowed to participate fully in management activities.

Vern is a partner in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

A general partnership is a pass-through entity and a tax-paying entity.