Question 1

Regarding partnership property:

Accepted Answer

A)  only a managing partner has the right to use firm property for firm business. 
B)  where a three-person partnership owns three autos,each partner owns one of the autos individually. 
C)  on the death of a partner,that partner's share of partnership property vests in his or her next of kin. 
D)  a creditor of a partner cannot proceed against any specific items of partnership property. 
A)  only a managing partner has the right to use firm property for firm business. 
B)  where a three-person partnership owns three autos,each partner owns one of the autos individually. 
C)  on the death of a partner,that partner's share of partnership property vests in his or her next of kin. 
D)  a creditor of a partner cannot proceed against any specific items of partnership property. D

Question 2

Partnership property is only that property contributed by the partners.

Accepted Answer

A) True 
 B)False  False

Question 3

In a partnership of four physicians,a decision to buy an office copier for the partnership must be approved by:

Accepted Answer

A)  all of the partners. 
B)  at least three of the partners. 
C)  at least two of the partners. 
D)  one partner. 
A)  all of the partners. 
B)  at least three of the partners. 
C)  at least two of the partners. 
D)  one partner. B

Question 4

Partnership property may consist of:

Accepted Answer

A)  real property only. 
B)  personal property only. 
C)  any and all property acquired by the partnership. 
D)  all property contributed by the partners or acquired for the firm or with its funds. 
A)  real property only. 
B)  personal property only. 
C)  any and all property acquired by the partnership. 
D)  all property contributed by the partners or acquired for the firm or with its funds.

Question 5

Partners are:

Accepted Answer

A)  jointly liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
B)  jointly and severally liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
C)  jointly and severally liable on all firm contracts and jointly liable for all torts committed by one of the partners in the scope of partnership business. 
D)  jointly liable on all firm contracts and jointly and severally liable for all torts committed by one of the partners in the scope of partnership business. 
A)  jointly liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
B)  jointly and severally liable on all firm contracts and for all torts committed by one of the partners in the scope of partnership business. 
C)  jointly and severally liable on all firm contracts and jointly liable for all torts committed by one of the partners in the scope of partnership business. 
D)  jointly liable on all firm contracts and jointly and severally liable for all torts committed by one of the partners in the scope of partnership business.

Question 6

A partner has the authority to do those acts that are customary for a member of a partnership conducting the particular business of that partnership.

Accepted Answer

A) True 
 B)False

Question 7

Each partner is an agent of the partnership.

Accepted Answer

A) True 
 B)False

Question 8

When a partner executes an agreement outside the limitations of that partner's agreed scope of power,the other partners are always able to set aside the contract.

Accepted Answer

A) True 
 B)False

Question 9

A combination of two or more persons for a common nonprofit purpose is commonly an unincorporated association.

Accepted Answer

A) True 
 B)False

Question 10

Bankruptcy of only one of the partners does not cause dissolution of the firm.

Accepted Answer

A) True 
 B)False

Question 11

The Uniform Partnership Act,a codification of partnership law,has been adopted by 49 states.

Accepted Answer

A) True 
 B)False

Question 12

Partners have the implied authority to bind the partnership by contracts of surety for any and all purposes.

Accepted Answer

A) True 
 B)False

Question 13

The sharing of profits and losses is conclusive evidence of partnership.

Accepted Answer

A) True 
 B)False

Question 14

A partnership may occur even though the parties did not label their relationship a partnership.

Accepted Answer

A) True 
 B)False

Question 15

In determining the rights of partner Dewey in the firm of Dewey,Cheatham and Howe,the most important reference point is:

Accepted Answer

A)  the Uniform Partnership Act. 
B)  the partnership agreement. 
C)  the sworn testimony of Cheatham and Howe. 
D)  the customs and traditions of similar partnerships. 
A)  the Uniform Partnership Act. 
B)  the partnership agreement. 
C)  the sworn testimony of Cheatham and Howe. 
D)  the customs and traditions of similar partnerships.

Question 16

Prohibited transactions by a partner without the consent of other partners include:

Accepted Answer

A)  a contract that makes it impossible for the firm to conduct its usual business. 
B)  submitting controversies of the firm to arbitration. 
C)  making a general assignment of firm property for the benefit of creditors 
D)  all of the above. 
A)  a contract that makes it impossible for the firm to conduct its usual business. 
B)  submitting controversies of the firm to arbitration. 
C)  making a general assignment of firm property for the benefit of creditors 
D)  all of the above.

Question 17

Persons who are not partners under appropriate circumstances may be held liable to third persons as though they were partners.

Accepted Answer

A) True 
 B)False

Question 18

A partner may withdraw from the partnership without liability:

Accepted Answer

A)  unless the withdrawal violates the partnership agreement. 
B)  when the partnership is not for a definite purpose. 
C)  when the partnership is not for a definite time. 
D)  all of the above. 
A)  unless the withdrawal violates the partnership agreement. 
B)  when the partnership is not for a definite purpose. 
C)  when the partnership is not for a definite time. 
D)  all of the above.

Question 19

Which of the following does not result in dissolution of the partnership by operation of law?

Accepted Answer

A)  The expulsion of a partner. 
B)  Bankruptcy of the partnership or of one of the partners. 
C)  The death of a partner. 
D)  All of these will result in dissolution of the partnership by operation of law. 
A)  The expulsion of a partner. 
B)  Bankruptcy of the partnership or of one of the partners. 
C)  The death of a partner. 
D)  All of these will result in dissolution of the partnership by operation of law.

Question 20

A registration certificate for a partnership's fictitious name contained the names of Barry,Boyd,and Swartz.Cruise extended credit to the firm in reliance in part on the certificate that named Swartz as a partner.Swartz,in fact,had no knowledge of the certificate and never had agreed to be a partner.Because of Cruise's reliance on the certificate and the statement that Swartz was a partner,Swartz has a partner's liability insofar as Cruise is concerned.

Accepted Answer

A) True 
 B)False

Exam 42: Partnerships

Regarding partnership property:

Partnership property is only that property contributed by the partners.

In a partnership of four physicians,a decision to buy an office copier for the partnership must be approved by:

Partnership property may consist of:

Partners are:

A partner has the authority to do those acts that are customary for a member of a partnership conducting the particular business of that partnership.

Each partner is an agent of the partnership.

When a partner executes an agreement outside the limitations of that partner's agreed scope of power,the other partners are always able to set aside the contract.

A combination of two or more persons for a common nonprofit purpose is commonly an unincorporated association.

Bankruptcy of only one of the partners does not cause dissolution of the firm.

The Uniform Partnership Act,a codification of partnership law,has been adopted by 49 states.

Partners have the implied authority to bind the partnership by contracts of surety for any and all purposes.

The sharing of profits and losses is conclusive evidence of partnership.

A partnership may occur even though the parties did not label their relationship a partnership.

In determining the rights of partner Dewey in the firm of Dewey,Cheatham and Howe,the most important reference point is:

Prohibited transactions by a partner without the consent of other partners include:

Persons who are not partners under appropriate circumstances may be held liable to third persons as though they were partners.

A partner may withdraw from the partnership without liability:

Which of the following does not result in dissolution of the partnership by operation of law?

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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