Question 1

General partners have ________ for the debts and obligations of the partnership.

Accepted Answer

A) limited exemption 
B) conditional exemption 
C) limited organizational liability 
D) unlimited personal liability 
A) limited exemption 
B) conditional exemption 
C) limited organizational liability 
D) unlimited personal liability

Question 2

The ________ is a model act that codifies general partnership law.

Accepted Answer

A) Uniform Partnership Act (UP
A)  
B) Fair Employment Partnership Act (FEP
A)  
C) Americans with Disabilities Act (AD
A)  
D) Age Discrimination in Employment Act (AED
A)  
A) Uniform Partnership Act (UP
A)  
B) Fair Employment Partnership Act (FEP
A)  
C) Americans with Disabilities Act (AD
A)  
D) Age Discrimination in Employment Act (AED
A)

Question 3

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

Accepted Answer

A) action for an accounting 
B) indemnification 
C) winding up 
D) dissolution 
A) action for an accounting 
B) indemnification 
C) winding up 
D) dissolution

Question 4

Which of the following is true of a sole proprietorship?

Accepted Answer

A) A business operated under sole proprietorship cannot be transferred. 
B) Large businesses cannot be operated under sole proprietorship. 
C) A business operated under sole proprietorship should be owned by one or more people of the same family. 
D) Creditors can recover claims against the business from the sole proprietor's personal assets. 
A) A business operated under sole proprietorship cannot be transferred. 
B) Large businesses cannot be operated under sole proprietorship. 
C) A business operated under sole proprietorship should be owned by one or more people of the same family. 
D) Creditors can recover claims against the business from the sole proprietor's personal assets.

Question 5

Which of the following is a major form of conducting a business?

Accepted Answer

A) institution 
B) charity 
C) corporation 
D) trust 
A) institution 
B) charity 
C) corporation 
D) trust

Question 6

List and briefly explain the advantages and disadvantages of a sole proprietorship.

Accepted Answer

There are several major advantages to op

Question 7

Which of the following must be in writing even if it is below the time stipulation of the Statute of Frauds?

Accepted Answer

A) businesses that have more than one commercial venture 
B) partnerships authorized to deal real estate 
C) businesses that are authorized to lend money 
D) enterprises which deal with health and medicine 
A) businesses that have more than one commercial venture 
B) partnerships authorized to deal real estate 
C) businesses that are authorized to lend money 
D) enterprises which deal with health and medicine

Question 8

A trade name statement refers to a document that is filed with the state that designates a trade name of a business,the name and address of the applicant,and the address of the business.

Accepted Answer

A) True 
 B)False

Question 9

Competing with the partnership without the permission of other partners violates a general partner's ________.

Accepted Answer

A) duty to inform 
B) duty of loyalty 
C) duty of care 
D) duty of obedience 
A) duty to inform 
B) duty of loyalty 
C) duty of care 
D) duty of obedience

Question 10

Which of the following is true of general partnership?

Accepted Answer

A) A business should make a profit in order to qualify as a general partnership. 
B) The general partners need not be the co-owners of the business. 
C) General partnerships can be oral or implied from the conduct of the parties. 
D) Charity organizations and schools are mostly formed from general partnerships. 
A) A business should make a profit in order to qualify as a general partnership. 
B) The general partners need not be the co-owners of the business. 
C) General partnerships can be oral or implied from the conduct of the parties. 
D) Charity organizations and schools are mostly formed from general partnerships.

Question 11

A plaintiff must name the partnership and all of the partners as defendants in a lawsuit in order to pursue a claim for ________.

Accepted Answer

A) multiple liability 
B) joint liability 
C) limited liability 
D) unlimited personal liability 
A) multiple liability 
B) joint liability 
C) limited liability 
D) unlimited personal liability

Question 12

Which of the following is a right to which every general partner is entitled under the Uniform Partnership Act?

Accepted Answer

A) right to remuneration 
B) right to free and open speech 
C) right to return of capital 
D) right to legal action 
A) right to remuneration 
B) right to free and open speech 
C) right to return of capital 
D) right to legal action

Question 13

General partnerships that exist for more than ________ must have their general partnership agreement in writing under the Statute of Frauds in order to deal in real estate.

Accepted Answer

A) six months 
B) 180 days 
C) five years 
D) one year 
A) six months 
B) 180 days 
C) five years 
D) one year

Question 14

General partnerships do not pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 15

If no other form of business organization is chosen in a business operated by only one person,the business is by default a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 16

A ________ is a document that is filed with the state that designates a trade name of a business.

Accepted Answer

A) proprietorship statement 
B) partnership agreement 
C) fictitious business name statement 
D) nomenclature affidavit 
A) proprietorship statement 
B) partnership agreement 
C) fictitious business name statement 
D) nomenclature affidavit

Question 17

General partners are permitted to sue other partners for an accounting of the partnership.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) The business name has to have the names of all the partners. 
B) The business name cannot be a fictitious name. 
C) The business name selected by the partnership cannot indicate that it is a corporation. 
D) The business cannot operate under a trade name. 
A) The business name has to have the names of all the partners. 
B) The business name cannot be a fictitious name. 
C) The business name selected by the partnership cannot indicate that it is a corporation. 
D) The business cannot operate under a trade name.

Question 19

A general partnership is valid only if it is carried out for profit.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following serves as a motive for an organization or venture to qualify as a partnership?

Accepted Answer

A) The organization seeks to increase its stake in the percentage of profits made by the business. 
B) The organization seeks to avoid personal liability. 
C) The organization wants to make a profit. 
D) The organization wants to reduce the number of approvals it seeks before taking decisions. 
A) The organization seeks to increase its stake in the percentage of profits made by the business. 
B) The organization seeks to avoid personal liability. 
C) The organization wants to make a profit. 
D) The organization wants to reduce the number of approvals it seeks before taking decisions.

Exam 34: Small Business, entrepreneurship, and General Partnerships

General partners have ________ for the debts and obligations of the partnership.

The ________ is a model act that codifies general partnership law.

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

Which of the following is true of a sole proprietorship?

Which of the following is a major form of conducting a business?

List and briefly explain the advantages and disadvantages of a sole proprietorship.

Which of the following must be in writing even if it is below the time stipulation of the Statute of Frauds?

A trade name statement refers to a document that is filed with the state that designates a trade name of a business,the name and address of the applicant,and the address of the business.

Competing with the partnership without the permission of other partners violates a general partner's ________.

Which of the following is true of general partnership?

A plaintiff must name the partnership and all of the partners as defendants in a lawsuit in order to pursue a claim for ________.

Which of the following is a right to which every general partner is entitled under the Uniform Partnership Act?

General partnerships that exist for more than ________ must have their general partnership agreement in writing under the Statute of Frauds in order to deal in real estate.

General partnerships do not pay federal income taxes.

If no other form of business organization is chosen in a business operated by only one person,the business is by default a sole proprietorship.

A ________ is a document that is filed with the state that designates a trade name of a business.

General partners are permitted to sue other partners for an accounting of the partnership.

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

A general partnership is valid only if it is carried out for profit.

Which of the following serves as a motive for an organization or venture to qualify as a partnership?

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