Question 1

The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a partnership.

Accepted Answer

A) True 
 B)False

Question 2

A partner admitted as a partner into an existing partnership has unlimited liability for all obligations of the partnership arising before such admission.

Accepted Answer

A) True 
 B)False

Question 3

When a partner disassociates with a partnership:

Accepted Answer

A)  the partnership is no longer bound by acts of that partner,whether or not a notice is filed. 
B)  the disassociated partner is prohibited from competing with the partnership for a period of one year. 
C)  the disassociated partner may be liable for damages for breach of contract. 
D)  none of the above. 
A)  the partnership is no longer bound by acts of that partner,whether or not a notice is filed. 
B)  the disassociated partner is prohibited from competing with the partnership for a period of one year. 
C)  the disassociated partner may be liable for damages for breach of contract. 
D)  none of the above.

Question 4

A partnership involves partners' contributions of capital,services,or a combination of these.

Accepted Answer

A) True 
 B)False

Question 5

All partners must contribute money to be treated as partners.

Accepted Answer

A) True 
 B)False

Question 6

A partner cannot make a general assignment of firm property for the benefit of creditors unless authorized by the other partners or unless they have abandoned the business.

Accepted Answer

A) True 
 B)False

Question 7

The vested rights of partners are not extinguished by dissolving the firm,and the existing liabilities remain.

Accepted Answer

A) True 
 B)False

Question 8

A partner is considered an employee of the partnership when doing work that would ordinarily be done by an employee.

Accepted Answer

A) True 
 B)False

Question 9

In determining whether a partnership exists,which of the following factors is not evidence of a partnership?

Accepted Answer

A)  Shared profits and losses 
B)  Co-ownership of property 
C)  Equal control of the business 
D)  All of these are evidence of partnership. 
A)  Shared profits and losses 
B)  Co-ownership of property 
C)  Equal control of the business 
D)  All of these are evidence of partnership.

Question 10

A third person should recognize that a partner has limited or no authority if:

Accepted Answer

A)  the partner seeks to act for the partnership concerning a matter not within the usual business of the firm. 
B)  the third person knows that the partnership has been terminated. 
C)  the partner seeks to pay a personal obligation by issuing a promissory note in the name of the firm. 
D)  all of the above. 
A)  the partner seeks to act for the partnership concerning a matter not within the usual business of the firm. 
B)  the third person knows that the partnership has been terminated. 
C)  the partner seeks to pay a personal obligation by issuing a promissory note in the name of the firm. 
D)  all of the above.

Question 11

Creditors of a firm have first claim on the assets of the partnership.

Accepted Answer

A) True 
 B)False

Question 12

A majority action of partners is not binding if it contravenes the partnership agreement.

Accepted Answer

A) True 
 B)False

Question 13

Sharing of gross returns,as compared to the sharing of profits,is strong evidence of a partnership.

Accepted Answer

A) True 
 B)False

Question 14

An assignee of a partner's interest does not become a partner without the consent of the other partners and is only entitled to:

Accepted Answer

A)  participate in the management of the partnership. 
B)  receive the assignor's share of the profits during the term of the partnership and the assignor's share of capital on dissolution. 
C)  inspect the books of the partnership. 
D)  vote on matters concerning the business of the partnership. 
A)  participate in the management of the partnership. 
B)  receive the assignor's share of the profits during the term of the partnership and the assignor's share of capital on dissolution. 
C)  inspect the books of the partnership. 
D)  vote on matters concerning the business of the partnership.

Question 15

A creditor of an individual partner cannot proceed against any specific items of partnership property,but can obtain a charging order against that partner's interest in the partnership.

Accepted Answer

A) True 
 B)False

Question 16

When the dissolution of a partnership has been caused by operation of law,notice of such dissolution must be given to third persons.

Accepted Answer

A) True 
 B)False

Question 17

When a partnership is dissolved by a partner's bankruptcy,notice:

Accepted Answer

A)  is not required. 
B)  must be given to the other partners only. 
C)  must be given to third persons only. 
D)  must be given to both other partners and third persons. 
A)  is not required. 
B)  must be given to the other partners only. 
C)  must be given to third persons only. 
D)  must be given to both other partners and third persons.

Question 18

Each partner has to a right to:

Accepted Answer

A)  take an equal part in transacting the business of the firm. 
B)  receive compensation for any work done for the partnership. 
C)  both a.and b. 
D)  neither a.nor b. 
A)  take an equal part in transacting the business of the firm. 
B)  receive compensation for any work done for the partnership. 
C)  both a.and b. 
D)  neither a.nor b.

Question 19

The assignee of a partner's interest in the partnership becomes a partner only with the consent of the other partners.

Accepted Answer

A) True 
 B)False

Question 20

After the dissolution of a partnership,partners retain the authority to perform any acts necessary to wind up the business.

Accepted Answer

A) True 
 B)False

Exam 42: Partnerships

The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a partnership.

A partner admitted as a partner into an existing partnership has unlimited liability for all obligations of the partnership arising before such admission.

When a partner disassociates with a partnership:

A partnership involves partners' contributions of capital,services,or a combination of these.

All partners must contribute money to be treated as partners.

A partner cannot make a general assignment of firm property for the benefit of creditors unless authorized by the other partners or unless they have abandoned the business.

The vested rights of partners are not extinguished by dissolving the firm,and the existing liabilities remain.

A partner is considered an employee of the partnership when doing work that would ordinarily be done by an employee.

In determining whether a partnership exists,which of the following factors is not evidence of a partnership?

A third person should recognize that a partner has limited or no authority if:

Creditors of a firm have first claim on the assets of the partnership.

A majority action of partners is not binding if it contravenes the partnership agreement.

Sharing of gross returns,as compared to the sharing of profits,is strong evidence of a partnership.

An assignee of a partner's interest does not become a partner without the consent of the other partners and is only entitled to:

A creditor of an individual partner cannot proceed against any specific items of partnership property,but can obtain a charging order against that partner's interest in the partnership.

When the dissolution of a partnership has been caused by operation of law,notice of such dissolution must be given to third persons.

When a partnership is dissolved by a partner's bankruptcy,notice:

Each partner has to a right to:

The assignee of a partner's interest in the partnership becomes a partner only with the consent of the other partners.

After the dissolution of a partnership,partners retain the authority to perform any acts necessary to wind up the business.

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

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Nature and Classes of Contracts: Contracting on the Internet

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Third Persons and Contracts

Discharge of Contracts

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Bankruptcy

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