Exam 30: Formation and Internal Relations of General Partnerships

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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.

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(Essay)

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Question 1

Correct Answer:

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A partnership should have a firm name in order to acquire and retain goodwill.The name selected by the partners may not be identical or deceptively similar to the name of any other existing business concern.It may contain either Bert's or Philip's name,or both.It might be a fictitious or assumed name.An assumed name statute provides that a certificate must be filed with the state showing the name under which the business is conducted and the real names and addresses of all persons conducting the business as partners or proprietors.Nearly all of the states have this statute so that interested parties,customers,creditors,etc.can find out the names of the business owners.A partnership name may not indicate to the public that the business is a corporation.

Assignment of a partner's interest will cause dissolution.

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(True/False)

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Question 2

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False

A person who receives a share of profits of a business is presumed to be a partner.

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(True/False)

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Question 3

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True

Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits,but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:

(Multiple Choice)

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Question 4

Former partners,as well as current partners,have some rights to access partnership books and records.

(True/False)

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Question 5

Burnside Corporation and the D.Stewart Trust can be partners in a partnership if they carry on as co-owners a business for profit.

(True/False)

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Question 6

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

(Multiple Choice)

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Question 7

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess,a business owner,is personally liable if:

(Multiple Choice)

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Question 8

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

(Essay)

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Question 9

A partner's transferable 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.

(Multiple Choice)

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Question 10

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

(Essay)

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Question 11

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

(Multiple Choice)

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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.

(True/False)

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Question 13

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

(True/False)

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Question 14

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership,nor does it result in McClendon's being entitled to participate in the management of the partnership business.

(True/False)

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Question 15

A partner can withdraw his partnership capital at any time.

(True/False)

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Question 16

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?

(Multiple Choice)

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Question 17

A partner has all but which of the following duties?

(Multiple Choice)

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Question 18

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:

(Multiple Choice)

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Question 19

A charitable organization cannot be formed as a partnership.

(True/False)

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Question 20

Showing 1 - 20 of 70

Exam 30: Formation and Internal Relations of General Partnerships

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.

Assignment of a partner's interest will cause dissolution.

A person who receives a share of profits of a business is presumed to be a partner.

Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits,but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:

Former partners,as well as current partners,have some rights to access partnership books and records.

Burnside Corporation and the D.Stewart Trust can be partners in a partnership if they carry on as co-owners a business for profit.

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

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess,a business owner,is personally liable if:

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

A partner's transferable 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.

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

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

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.

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

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership,nor does it result in McClendon's being entitled to participate in the management of the partnership business.

A partner can withdraw his partnership capital at any time.

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?

A partner has all but which of the following duties?

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:

A charitable organization cannot be formed as a partnership.

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 and 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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