Question 1

Sole proprietors have limited liability for the sole proprietorship's debts.

Accepted Answer

A) True 
 B)False

Question 2

Alice and Brad enter into a partnership, which becomes insolvent, as does Brad.Alice is fully liable for the debts of the partnership.

Accepted Answer

A) True 
 B)False

Question 3

Under the RUPA, no person may become a member of a partnership without the consent of all the partners.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the correct definition for a partnership?

Accepted Answer

A) An association of two or more persons with one or more general partners and one or more limited partners. 
B) A legal entity ordinarily consisting of an association of numerous individuals. 
C) An association of two or more persons to carry on as co-tenants in business. 
D) An association of two or more persons to carry on as co-owners a business for profit. 
A) An association of two or more persons with one or more general partners and one or more limited partners. 
B) A legal entity ordinarily consisting of an association of numerous individuals. 
C) An association of two or more persons to carry on as co-tenants in business. 
D) An association of two or more persons to carry on as co-owners a business for profit.

Question 5

A sole proprietorship dissolves upon the death of the owner.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most convincing evidence of a partnership arrangement?

Accepted Answer

A) Two or more persons are co-owners of property used in a business. 
B) Two or more persons have a written agreement regarding a fundraiser for charity. 
C) Two or more persons carry on a business for profit, but they have no formal agreement. 
D) Two person share a joint savings account in which they deposit money and share the interest. 
A) Two or more persons are co-owners of property used in a business. 
B) Two or more persons have a written agreement regarding a fundraiser for charity. 
C) Two or more persons carry on a business for profit, but they have no formal agreement. 
D) Two person share a joint savings account in which they deposit money and share the interest.

Question 7

In the case of Thomas v.Lloyd, the court held:

Accepted Answer

A) the use of land by a partnership is determinative of the fact that the land is owned by the partnership. 
B) whether real estate titled in the names of individual partners is partnership property is a question of fact, and the burden of proof is on the one alleging that the actual ownership does not match the names on the legal title. 
C) payment of real estate taxes out of partnership funds is determinative of the fact that the land is a partnership asset. 
D) payment of promissory note payments for the real estate out of partnership funds is determinative of the fact that the realty is a partnership asset. 
A) the use of land by a partnership is determinative of the fact that the land is owned by the partnership. 
B) whether real estate titled in the names of individual partners is partnership property is a question of fact, and the burden of proof is on the one alleging that the actual ownership does not match the names on the legal title. 
C) payment of real estate taxes out of partnership funds is determinative of the fact that the land is a partnership asset. 
D) payment of promissory note payments for the real estate out of partnership funds is determinative of the fact that the realty is a partnership asset.

Question 8

The UPA treats a partnership as a legal entity for all purposes.

Accepted Answer

A) True 
 B)False

Question 9

General partnerships are used frequently in finance, insurance, accounting, real estate, law, and other services.

Accepted Answer

A) True 
 B)False

Question 10

What are the ways the RUPA recognizes a partnership as an entity?

Accepted Answer

The UPA recognizes a partnership as an e

Question 11

Which of the following would be the most convincing evidence of a partnership?

Accepted Answer

A) An agreement to share in the management of a business. 
B) Agreements to share gross returns. 
C) An agreement to share profits and losses. 
D) An agreement to pay a firm manager a percentage of the profits for his salary. 
A) An agreement to share in the management of a business. 
B) Agreements to share gross returns. 
C) An agreement to share profits and losses. 
D) An agreement to pay a firm manager a percentage of the profits for his salary.

Question 12

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 13

A partner can withdraw his partnership capital at any time.

Accepted Answer

A) True 
 B)False

Question 14

Bert and Philip have decided to form a partnership to operate a lawn care service.Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Accepted Answer

A partnership should have a firm name in

Question 15

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

Accepted Answer

A) limited liability limited partnership. 
B) limited partnership. 
C) limited liability company. 
D) business trust. 
A) limited liability limited partnership. 
B) limited partnership. 
C) limited liability company. 
D) business trust.

Question 16

Anne is hired to manage an unincorporated dress boutique owned by Betty.The two agree that Anne will receive one-third of the net profits, which amount is to be paid to her on a monthly basis.Is Anne a partner? If the boutique has a loss instead of a profit, would Anne have to share the loss? Explain.

Accepted Answer

Anne is not a partner since sh

Question 17

Which of the following would lack the capacity to become a partner?

Accepted Answer

A) A trust. 
B) An adjudicated incompetent. 
C) A corporation. 
D) All of the above. 
A) A trust. 
B) An adjudicated incompetent. 
C) A corporation. 
D) All of the above.

Question 18

The RUPA cannot be modified by agreement of the partners to a partnership.Its provisions must be strictly followed in any partnership agreement.

Accepted Answer

A) True 
 B)False

Question 19

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Accepted Answer

A) joint tenant. 
B) tenant in common. 
C) tenant in partnership. 
D) tenant by the entireties. 
A) joint tenant. 
B) tenant in common. 
C) tenant in partnership. 
D) tenant by the entireties.

Question 20

Under the UPA, one of the advantages of the partnership form of doing business is continuity of existence.

Accepted Answer

A) True 
 B)False

Exam 31: Formation and Internal Relations of General Partnerships

Sole proprietors have limited liability for the sole proprietorship's debts.

Alice and Brad enter into a partnership, which becomes insolvent, as does Brad.Alice is fully liable for the debts of the partnership.

Under the RUPA, no person may become a member of a partnership without the consent of all the partners.

Which of the following is the correct definition for a partnership?

A sole proprietorship dissolves upon the death of the owner.

Which of the following is the most convincing evidence of a partnership arrangement?

In the case of Thomas v.Lloyd, the court held:

The UPA treats a partnership as a legal entity for all purposes.

General partnerships are used frequently in finance, insurance, accounting, real estate, law, and other services.

What are the ways the RUPA recognizes a partnership as an entity?

Which of the following would be the most convincing evidence of a partnership?

Corporations today outnumber unincorporated business associations plus sole proprietorships.

A partner can withdraw his partnership capital at any time.

Bert and Philip have decided to form a partnership to operate a lawn care service.Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

Which of the following would lack the capacity to become a partner?

The RUPA cannot be modified by agreement of the partners to a partnership.Its provisions must be strictly followed in any partnership agreement.

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Under the UPA, one of the advantages of the partnership form of doing business is continuity of existence.

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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