Question 1

All the following are characteristics of a general partnership except: ______.

Accepted Answer

A)  general 
B)  silent 
C)  secret 
D)  nominal 
A)  general 
B)  silent 
C)  secret 
D)  nominal

Question 2

A registration certificate for a partnership's fictitious name contained the names of Barry, Boyd, and Swartz. Bank or America extended credit to the firm in reliance in part on the certificate that named Swartz as a partner. Swartz, in fact, had no knowledge of the certificate and never had agreed to be a partner. Because of BOA's reliance on the certificate and the statement that Swartz was a partner, Swartz has a partner's liability insofar as Cruise is concerned.

Accepted Answer

A) True 
 B)False

Question 3

After the dissolution of a partnership, partners retain the authority to perform any acts necessary to wind up the business.

Accepted Answer

A) True 
 B)False

Question 4

The fact that the parties share profits and losses is strong evidence of a partnership.

Accepted Answer

A) True 
 B)False

Question 5

The vested rights of partners are not extinguished by dissolving the firm and any existing liabilities remain.

Accepted Answer

A) True 
 B)False

Question 6

When the dissolution of a partnership has been caused by operation of law, notice of such dissolution must be given to third persons.

Accepted Answer

A) True 
 B)False

Question 7

Bankruptcy of only one of the partners does not cause dissolution of the firm.

Accepted Answer

A) True 
 B)False

Question 8

Each partner has to a right to do all of the following without a partnership vote except: ______.

Accepted Answer

A)  take an equal part in transacting the business of the firm. 
B)  receive compensation for any work done for the partnership. 
C)  sell the firm's goods in the regular course of business. 
D)  borrow money for firm purposes. 
A)  take an equal part in transacting the business of the firm. 
B)  receive compensation for any work done for the partnership. 
C)  sell the firm's goods in the regular course of business. 
D)  borrow money for firm purposes.

Question 9

All the following are characteristics of a general partnership except: ______.

Accepted Answer

A)  separate entity. 
B)  voluntary and consensual. 
C)  partner contributions. 
D)  co-owners for profit. 
A)  separate entity. 
B)  voluntary and consensual. 
C)  partner contributions. 
D)  co-owners for profit.

Question 10

A combination of two or more persons for a common nonprofit purpose is commonly an unincorporated association.

Accepted Answer

A) True 
 B)False

Question 11

Partnership property may consist of:

Accepted Answer

A)  real property only. 
B)  personal property only. 
C)  any and all property acquired by the partnership. 
D)  all property contributed by the partners or acquired for the firm or with its funds. 
A)  real property only. 
B)  personal property only. 
C)  any and all property acquired by the partnership. 
D)  all property contributed by the partners or acquired for the firm or with its funds.

Question 12

If Bruce receives a fixed payment for performing continuing services for a third party he is considered a partner, regardless of whether he shares in partnership profits or losses.

Accepted Answer

A) True 
 B)False

Question 13

Persons who are not partners under appropriate circumstances may be held liable to third persons under the doctrine of partnership by estoppel.

Accepted Answer

A) True 
 B)False

Question 14

If the partnership agreement is silent on a matter, UPA or RUPA may govern the transaction.

Accepted Answer

A) True 
 B)False

Question 15

An assignee of a partner's interest does not become a partner without the consent of the other partners and is only entitled to: _______.

Accepted Answer

A)  participate in the management of the partnership. 
B)  receive the assignor's share of the profits during the term of the partnership and the assignor's share of capital on dissolution. 
C)  inspect the books of the partnership. 
D)  vote on matters concerning the business of the partnership. 
A)  participate in the management of the partnership. 
B)  receive the assignor's share of the profits during the term of the partnership and the assignor's share of capital on dissolution. 
C)  inspect the books of the partnership. 
D)  vote on matters concerning the business of the partnership.

Question 16

A partner must contribute capital to be considered a 'full partner.'

Accepted Answer

A) True 
 B)False

Question 17

When a partnership is dissolved by the act of a partner, notice:

Accepted Answer

A)  is not required. 
B)  must be given to the other partners only. 
C)  must be given to third persons only. 
D)  must be given to both other partners and third persons. 
A)  is not required. 
B)  must be given to the other partners only. 
C)  must be given to third persons only. 
D)  must be given to both other partners and third persons.

Question 18

Partners are:

Accepted Answer

A)  jointly liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
B)  jointly and severally liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
C)  jointly and severally liable on all firm contracts and jointly liable for all torts committed by one of the partners in the scope of partnership business. 
D)  jointly liable on all firm contracts and jointly and severally liable for all torts committed by one of the partners in the scope of partnership business. 
A)  jointly liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
B)  jointly and severally liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
C)  jointly and severally liable on all firm contracts and jointly liable for all torts committed by one of the partners in the scope of partnership business. 
D)  jointly liable on all firm contracts and jointly and severally liable for all torts committed by one of the partners in the scope of partnership business.

Question 19

Creditors of a firm have first claim on the assets of the partnership.

Accepted Answer

A) True 
 B)False

Question 20

A partner's authority to act for the partnership is similar to the authority of a(n):

Accepted Answer

A)  agent to act for a principal. 
B)  independent contractor to act for an employer. 
C)  shareholder to act for a corporation. 
D)  employee to act for another employee. 
A)  agent to act for a principal. 
B)  independent contractor to act for an employer. 
C)  shareholder to act for a corporation. 
D)  employee to act for another employee.

Exam 41: Partnerships

All the following are characteristics of a general partnership except: ______.

After the dissolution of a partnership, partners retain the authority to perform any acts necessary to wind up the business.

The fact that the parties share profits and losses is strong evidence of a partnership.

The vested rights of partners are not extinguished by dissolving the firm and any existing liabilities remain.

When the dissolution of a partnership has been caused by operation of law, notice of such dissolution must be given to third persons.

Bankruptcy of only one of the partners does not cause dissolution of the firm.

Each partner has to a right to do all of the following without a partnership vote except: ______.

All the following are characteristics of a general partnership except: ______.

A combination of two or more persons for a common nonprofit purpose is commonly an unincorporated association.

Partnership property may consist of:

If Bruce receives a fixed payment for performing continuing services for a third party he is considered a partner, regardless of whether he shares in partnership profits or losses.

Persons who are not partners under appropriate circumstances may be held liable to third persons under the doctrine of partnership by estoppel.

If the partnership agreement is silent on a matter, UPA or RUPA may govern the transaction.

An assignee of a partner's interest does not become a partner without the consent of the other partners and is only entitled to: _______.

A partner must contribute capital to be considered a 'full partner.'

When a partnership is dissolved by the act of a partner, notice:

Partners are:

Creditors of a firm have first claim on the assets of the partnership.

A partner's authority to act for the partnership is similar to the authority of a(n):

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