Question 1

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 2

A sole proprietorship dissolves upon the death of the owner.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

States have authorized the formation of limited liability companies.

Accepted Answer

A) True 
 B)False

Question 8

In the case of In Re KeyTronics,the court held that:

Accepted Answer

A) the intent of the parties to form a partnership is controlling as to partnership formation under the RUPA. 
B) there is a requirement that the parties have a specific agreement in order to form a partnership. 
C) the intent of the parties to form a partnership will be ascertained objectively from all the evidence and circumstances. 
D) under Section 202(a) of the RUPA, the intent necessary to form an association refers to the intent to form a partnership per se. 
A) the intent of the parties to form a partnership is controlling as to partnership formation under the RUPA. 
B) there is a requirement that the parties have a specific agreement in order to form a partnership. 
C) the intent of the parties to form a partnership will be ascertained objectively from all the evidence and circumstances. 
D) under Section 202(a) of the RUPA, the intent necessary to form an association refers to the intent to form a partnership per se.

Question 9

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 10

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 11

Marilyn,George,and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses.Are they partners?

Accepted Answer

A) Yes, since they are associating to carry on a for-profit business which they co-own. 
B) No, because they each control the use of the land. 
C) Yes, because if there is a loss in the land's value, they will all share that loss. 
D) No, they are merely joint venturers. 
A) Yes, since they are associating to carry on a for-profit business which they co-own. 
B) No, because they each control the use of the land. 
C) Yes, because if there is a loss in the land's value, they will all share that loss. 
D) No, they are merely joint venturers.

Question 12

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Accepted Answer

The basic features of a partnership agre

Question 13

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 14

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 15

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 16

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Compare "partnership property" with a "partner's interest." Consider such factors as the definition,the possession,the assignability,how attachment occurs,and the inheritability of each.

Accepted Answer

Partnership property is the sum of all t

Question 20

Any natural person having full capacity may enter a partnership.

Accepted Answer

A) True 
 B)False

Exam 30: Formation and Internal Relations of General Partnerships

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

A sole proprietorship dissolves upon the death of the owner.

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

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

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

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

States have authorized the formation of limited liability companies.

In the case of In Re KeyTronics,the court held that:

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.

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

Marilyn,George,and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses.Are they partners?

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

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:

Corporations today outnumber unincorporated business associations plus sole proprietorships.

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.

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

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

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

Compare "partnership property" with a "partner's interest." Consider such factors as the definition,the possession,the assignability,how attachment occurs,and the inheritability of each.

Any natural person having full capacity may enter 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

Filters