Question 1

An entrepreneur is a person who forms and operates a business.

Accepted Answer

A) True 
 B)False

Question 2

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit.

Accepted Answer

A) True 
 B)False

Question 3

Explain,with an example,the duty of care owed by a general partner.

Accepted Answer

A general partner must use reasonable ca

Question 4

Which of the following is true of a business operating as a sole proprietorship?

Accepted Answer

A) It is not considered a separate legal entity from the owner. 
B) It cannot be sold when the owner decides to do so. 
C) It requires governmental approval when being transferred. 
D) It has access to unrestricted capital by means of investments. 
A) It is not considered a separate legal entity from the owner. 
B) It cannot be sold when the owner decides to do so. 
C) It requires governmental approval when being transferred. 
D) It has access to unrestricted capital by means of investments.

Question 5

Which of the following is true of the management of a general partnership?

Accepted Answer

A) The number of votes a general partner has depends on the proportion of his or her capital investment. 
B) Partnership matters are decided by unanimous agreement only. 
C) Only general partners in the board of directors have the authority to participate in the management. 
D) If the vote is tied, the action being voted on is considered to be defeated. 
A) The number of votes a general partner has depends on the proportion of his or her capital investment. 
B) Partnership matters are decided by unanimous agreement only. 
C) Only general partners in the board of directors have the authority to participate in the management. 
D) If the vote is tied, the action being voted on is considered to be defeated.

Question 6

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

Accepted Answer

A) True 
 B)False

Question 7

An ordinary partnership is also known as a ________.

Accepted Answer

A) sole proprietorship 
B) general partnership 
C) limited partnership 
D) limited liability company 
A) sole proprietorship 
B) general partnership 
C) limited partnership 
D) limited liability company

Question 8

The sole proprietor has ________ liability.

Accepted Answer

A) zero personal 
B) limited organizational 
C) complete organizational 
D) unlimited personal 
A) zero personal 
B) limited organizational 
C) complete organizational 
D) unlimited personal

Question 9

In a sole proprietorship,the business is considered a separate legal entity from the owner.

Accepted Answer

A) True 
 B)False

Question 10

The designation of ________ is used for businesses that are operating under a trade name.

Accepted Answer

A) w.e.f. 
B) p.f.a. 
C) d.b.a. 
D) l.o.p. 
A) w.e.f. 
B) p.f.a. 
C) d.b.a. 
D) l.o.p.

Question 11

Which of the following best describes an entrepreneur?

Accepted Answer

A) a person who forms and operates a business 
B) a person who invests in an existing business 
C) a person who lends capital to a new business 
D) a person who derives a profit from a new or an existing business 
A) a person who forms and operates a business 
B) a person who invests in an existing business 
C) a person who lends capital to a new business 
D) a person who derives a profit from a new or an existing business

Question 12

________ is a situation in which a partner withdraws from a partnership without having the right to do so at that time.

Accepted Answer

A) Winding up 
B) Indemnification 
C) Wrongful dissolution 
D) Proliferation 
A) Winding up 
B) Indemnification 
C) Wrongful dissolution 
D) Proliferation

Question 13

Briefly explain the formation of a general partnership.

Accepted Answer

A business must meet four criteria to qu

Question 14

Which of the following is true of profits and losses in a general partnership?

Accepted Answer

A) The proportion of profit shared is equal to the general partner's initial investment. 
B) Losses are shared equally by all general partners. 
C) The general partner who proposed the idea of the business gets most profit. 
D) The proportion of investment governs only the proportion of loss shared and not profit obtained. 
A) The proportion of profit shared is equal to the general partner's initial investment. 
B) Losses are shared equally by all general partners. 
C) The general partner who proposed the idea of the business gets most profit. 
D) The proportion of investment governs only the proportion of loss shared and not profit obtained.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The term indemnification refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership.

Accepted Answer

A) True 
 B)False

Question 17

An inference of the existence of a general partnership is drawn in cases where profits are received in payment of wages owed to an employee.

Accepted Answer

A) True 
 B)False

Question 18

A sole proprietorship cannot be easily transferred when the owner desires to do so.

Accepted Answer

A) True 
 B)False

Question 19

The earnings and losses from a sole proprietorship are reported on ________.

Accepted Answer

A) the federal income tax filing document 
B) the business license that is renewed each year 
C) the proprietor's personal income tax filing 
D) the state income tax filing document 
A) the federal income tax filing document 
B) the business license that is renewed each year 
C) the proprietor's personal income tax filing 
D) the state income tax filing document

Exam 34: Small Business, entrepreneurship, and General Partnerships

An entrepreneur is a person who forms and operates a business.

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit.

Explain,with an example,the duty of care owed by a general partner.

Which of the following is true of a business operating as a sole proprietorship?

Which of the following is true of the management of a general partnership?

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

An ordinary partnership is also known as a ________.

The sole proprietor has ________ liability.

In a sole proprietorship,the business is considered a separate legal entity from the owner.

The designation of ________ is used for businesses that are operating under a trade name.

Which of the following best describes an entrepreneur?

________ is a situation in which a partner withdraws from a partnership without having the right to do so at that time.

Briefly explain the formation of a general partnership.

Which of the following is true of profits and losses in a general partnership?

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

The term indemnification refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership.

An inference of the existence of a general partnership is drawn in cases where profits are received in payment of wages owed to an employee.

A sole proprietorship cannot be easily transferred when the owner desires to do so.

The earnings and losses from a sole proprietorship are reported on ________.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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