Question 1

A partner cannot assign his interest in the partnership without dissolving the partnership.

Accepted Answer

A) True 
 B)False

Question 2

The RUPA treats a partnership as a legal entity in which one of the following respects?

Accepted Answer

A) Liability of partners for partnership obligations. 
B) For the purpose of suing or being sued. 
C) For all purposes. 
D) Assignment of a partner's interest. 
A) Liability of partners for partnership obligations. 
B) For the purpose of suing or being sued. 
C) For all purposes. 
D) Assignment of a partner's interest.

Question 3

Each partner, unless otherwise agreed, has equal rights in the management and conduct of the business of a general partnership.

Accepted Answer

A) True 
 B)False

Question 4

To be partnership property, title to real estate bought with partnership assets and used by the partnership may be put in the name of:

Accepted Answer

A) any partner in that individual's name. 
B) the partnership only. 
C) the partnership in its name, or one or more partners in their capacity as partners in the partnership if the name of the partnership is indicated in the instrument transferring title. 
D) None of the above. 
A) any partner in that individual's name. 
B) the partnership only. 
C) the partnership in its name, or one or more partners in their capacity as partners in the partnership if the name of the partnership is indicated in the instrument transferring title. 
D) None of the above.

Question 5

Michelle and Margaret agree to form a partnership.The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts.

Accepted Answer

A) True 
 B)False

Question 6

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.They each work two days a week.Donations fund the day-to-day operations.Do they have a partnership?

Accepted Answer

A) Yes, since each has control of the operation. 
B) Yes, because they are all co-equals in ownership of the shelter. 
C) No, because they have made no formal agreement. 
D) No, because there is no business for profit. 
A) Yes, since each has control of the operation. 
B) Yes, because they are all co-equals in ownership of the shelter. 
C) No, because they have made no formal agreement. 
D) No, because there is no business for profit.

Question 7

Miller and Baker formed a partnership and purchased a cycle shop.The name of the new business cannot be "Miller Cycle Shop" because the name of the partnership must include the names of both partners if it includes the name of one partner.

Accepted Answer

A) True 
 B)False

Question 8

A partner's interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest.

Accepted Answer

A) assignability 
B) creditors' rights 
C) charging order 
D) None of the above. 
A) assignability 
B) creditors' rights 
C) charging order 
D) None of the above.

Question 9

Partners may elect whether or not the partnership will be taxed as a separate entity.

Accepted Answer

A) True 
 B)False

Question 10

The law establishes a test for determining whether a partnership has been formed.The test includes which of the following?

Accepted Answer

A) An association of two or more persons. 
B) Conducting a business not necessarily for profit. 
C) That the partnership agreement is filed with the Secretary of State. 
D) The sharing of gross returns. 
A) An association of two or more persons. 
B) Conducting a business not necessarily for profit. 
C) That the partnership agreement is filed with the Secretary of State. 
D) The sharing of gross returns.

Question 11

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

Accepted Answer

A) Luke would be entitled to payment from the partnership for the extra 20-25 hours per week he spends on partnership business unless a partnership agreement denies this right. 
B) the partners cannot agree to deny extra payment for extra work by a partner. 
C) unless the partners have otherwise agreed, Luke is not entitled to payment for his work for the partnership, even if it is disproportionate to his partner's work. 
D) Luke would be entitled to payment from the partnership only if the amount of time and effort he expends on partnership business is grossly disproportionate to that spent by his partner. 
A) Luke would be entitled to payment from the partnership for the extra 20-25 hours per week he spends on partnership business unless a partnership agreement denies this right. 
B) the partners cannot agree to deny extra payment for extra work by a partner. 
C) unless the partners have otherwise agreed, Luke is not entitled to payment for his work for the partnership, even if it is disproportionate to his partner's work. 
D) Luke would be entitled to payment from the partnership only if the amount of time and effort he expends on partnership business is grossly disproportionate to that spent by his partner.

Question 12

The type of business enterprise with the most entities is the sole proprietorship, followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

Accepted Answer

A) True 
 B)False

Question 13

Ed, Vivian, and Pablo enter a partnership.Identify the source of the duties among the partners and whether these can be waived or varied.Name the principal duties Ed, Vivian, and Pablo have to each other and to the partnership.

Accepted Answer

The partnership agreement and statutes a

Question 14

A judicial lien against a partner's transferable interest in a partnership is known as:

Accepted Answer

A) a legal aggregate. 
B) a delegation of assets. 
C) a charging order. 
D) an assignment. 
A) a legal aggregate. 
B) a delegation of assets. 
C) a charging order. 
D) an assignment.

Question 15

A corporation is a legal entity separate from its owners who have limited liability for the corporation's obligations.

Accepted Answer

A) True 
 B)False

Question 16

Partners can be classified as either general or limited.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is correct with regard to partnership property?

Accepted Answer

A) Like partnership capital, it is a fixed amount set forth in the articles of partnership. 
B) Unless contrary intention appears, property acquired with partnership funds is partnership property. 
C) Under the UPA, title to real estate purchased with partnership funds cannot be taken in the partnership name. 
D) If there is no express agreement whether property owned by a partner before formation of the partnership and used in the partnership business is an asset of the partnership, the fact that taxes, liens, and expenses have been paid by the partnership is irrelevant. 
A) Like partnership capital, it is a fixed amount set forth in the articles of partnership. 
B) Unless contrary intention appears, property acquired with partnership funds is partnership property. 
C) Under the UPA, title to real estate purchased with partnership funds cannot be taken in the partnership name. 
D) If there is no express agreement whether property owned by a partner before formation of the partnership and used in the partnership business is an asset of the partnership, the fact that taxes, liens, and expenses have been paid by the partnership is irrelevant.

Question 18

Each partner has an interest in the partnership, which includes his share of profits and losses and his management rights.

Accepted Answer

A) True 
 B)False

Question 19

A __________ is an unincorporated business association consisting of at least one general partner and at least one limited partner.

Accepted Answer

A) joint venture 
B) limited liability company 
C) limited liability partnership 
D) limited partnership 
A) joint venture 
B) limited liability company 
C) limited liability partnership 
D) limited partnership

Question 20

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Accepted Answer

A) True 
 B)False

Exam 31: Formation and Internal Relations of General Partnerships

A partner cannot assign his interest in the partnership without dissolving the partnership.

The RUPA treats a partnership as a legal entity in which one of the following respects?

Each partner, unless otherwise agreed, has equal rights in the management and conduct of the business of a general partnership.

To be partnership property, title to real estate bought with partnership assets and used by the partnership may be put in the name of:

Michelle and Margaret agree to form a partnership.The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts.

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.They each work two days a week.Donations fund the day-to-day operations.Do they have a partnership?

Miller and Baker formed a partnership and purchased a cycle shop.The name of the new business cannot be "Miller Cycle Shop" because the name of the partnership must include the names of both partners if it includes the name of one partner.

A partner's interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest.

Partners may elect whether or not the partnership will be taxed as a separate entity.

The law establishes a test for determining whether a partnership has been formed.The test includes which of the following?

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

The type of business enterprise with the most entities is the sole proprietorship, followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

Ed, Vivian, and Pablo enter a partnership.Identify the source of the duties among the partners and whether these can be waived or varied.Name the principal duties Ed, Vivian, and Pablo have to each other and to the partnership.

A judicial lien against a partner's transferable interest in a partnership is known as:

A corporation is a legal entity separate from its owners who have limited liability for the corporation's obligations.

Partners can be classified as either general or limited.

Which of the following is correct with regard to partnership property?

Each partner has an interest in the partnership, which includes his share of profits and losses and his management rights.

A __________ is an unincorporated business association consisting of at least one general partner and at least one limited partner.

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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