Exam 5: Legal Considerations: The Parameters

Explain what a Partnership is as defined by the Revised Uniform Partnership Act (RUPA).

A __________ is not known as a partner by the general public and does not play an active role in the operation of the business.

A Sole proprietorship typically terminates on death or withdrawal of the sole proprietor.

A famous celebrity or business mogul granting use of their name for a business without investing money into the business would be an example of:

In contrast to proprietorships and partnerships, it is necessary to get permission from the state to create a corporation.

Most states require at least five incor?porators, each of whom must be an adult, and the payment of the necessary fees at filing time.

A corporation pays federal income taxes on its income. Shareholders have personal income from the corporation only when the corporation makes a distribution of its income to them.

As a limited partner, one is empowered to act in the name of the firm.