Question 1

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

Accepted Answer

A) True 
 B)False  False

Question 2

A(n) ________ is a partnership created for a fixed duration.

Accepted Answer

A)  partnership for a term 
B)  partnership at will 
C)  ordinary partnership 
D)  limited partnership 
A)  partnership for a term 
B)  partnership at will 
C)  ordinary partnership 
D)  limited partnership A

Question 3

The designation of ________ is used for businesses that are operating under a trade name.

Accepted Answer

A)  w.e.f. 
B)  p.f.a. 
C)  d.b.a. 
D)  l.o.p. 
A)  w.e.f. 
B)  p.f.a. 
C)  d.b.a. 
D)  l.o.p. C

Question 4

Which of the following is true of creating a sole proprietorship?

Accepted Answer

A)  No government approval is required. 
B)  Federal taxation is levied upon sole proprietorship. 
C)  No licenses are required to do business within a city or state. 
D)  Special permission must be obtained to receive a sole proprietorship status. 
A)  No government approval is required. 
B)  Federal taxation is levied upon sole proprietorship. 
C)  No licenses are required to do business within a city or state. 
D)  Special permission must be obtained to receive a sole proprietorship status.

Question 5

A general partnership agreement must always be in writing to be considered legal.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of the liability of an incoming partner?

Accepted Answer

A)  An incoming partner is liable for the previous debts of the partnership. 
B)  An incoming partner is equally liable for all existing debts of the partnership. 
C)  An incoming partner is liable for the debts of the partnership only to the extent of his or her capital contribution. 
D)  An incoming partner is not liable for the future debts of the partnership. 
A)  An incoming partner is liable for the previous debts of the partnership. 
B)  An incoming partner is equally liable for all existing debts of the partnership. 
C)  An incoming partner is liable for the debts of the partnership only to the extent of his or her capital contribution. 
D)  An incoming partner is not liable for the future debts of the partnership.

Question 7

General partners have ________ for the debts and obligations of the partnership.

Accepted Answer

A)  limited exemption 
B)  conditional exemption 
C)  limited organizational liability 
D)  unlimited personal liability 
A)  limited exemption 
B)  conditional exemption 
C)  limited organizational liability 
D)  unlimited personal liability

Question 8

Receipt of a share of business profits is prima facie evidence of a general partnership.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following serves as a motive for an organization or venture to qualify as a partnership?

Accepted Answer

A)  The organization seeks to increase its stake in the percentage of profits made by the business. 
B)  The organization seeks to avoid personal liability. 
C)  The organization wants to make a profit. 
D)  The organization wants to reduce the number of approvals it seeks before taking decisions. 
A)  The organization seeks to increase its stake in the percentage of profits made by the business. 
B)  The organization seeks to avoid personal liability. 
C)  The organization wants to make a profit. 
D)  The organization wants to reduce the number of approvals it seeks before taking decisions.

Question 10

How are assets distributed after the dissolution of a general partnership?

Accepted Answer

After partnership assets have been liqui

Question 11

A sole proprietor is legally responsible for the business's contracts.

Accepted Answer

A) True 
 B)False

Question 12

Orlando opened a hot dog stand in Brooklyn which unfortunately did not earn him a profit. He had borrowed $5,000 from the bank to set it up, which had to be repaid to the bank in two days. However, Orlando's friend Bob agreed to partner with him starting the subsequent month. From which of the following sources can the bank recover its $5,000 with interest?

Accepted Answer

A)  Orlando's secondary financer 
B)  Orlando's bank accounts 
C)  Orlando's family 
D)  Bob, Orlando's prospective business partner 
A)  Orlando's secondary financer 
B)  Orlando's bank accounts 
C)  Orlando's family 
D)  Bob, Orlando's prospective business partner

Question 13

The dissolution of a general partnership discharges the liability of an outgoing partner for existing partnership debts and obligations.

Accepted Answer

A) True 
 B)False

Question 14

A sole proprietor has limited personal liability.

Accepted Answer

A) True 
 B)False

Question 15

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

Accepted Answer

A)  action for an accounting 
B)  indemnification 
C)  winding up 
D)  dissolution 
A)  action for an accounting 
B)  indemnification 
C)  winding up 
D)  dissolution

Question 16

A general partnership cannot operate under the name of any one of the partners; the name has to represent all the partners if a fictitious name is not being adopted.

Accepted Answer

A) True 
 B)False

Question 17

The term indemnification refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership.

Accepted Answer

A) True 
 B)False

Question 18

Inference of the existence of a general partnership can be drawn if profits are received and ________.

Accepted Answer

A)  shared among the involved parties 
B)  payment of wages is distributed 
C)  held by only one party 
D)  debts are incurred 
A)  shared among the involved parties 
B)  payment of wages is distributed 
C)  held by only one party 
D)  debts are incurred

Question 19

The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is known as winding up.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a major form of conducting a business?

Accepted Answer

A)  institution 
B)  charity 
C)  corporation 
D)  trust 
A)  institution 
B)  charity 
C)  corporation 
D)  trust

Exam 34: Small Business, Entrepreneurship, and General Partnerships

No monetary damages can be claimed between partners for breach of duty of obedience in a general partnership.

A(n) ________ is a partnership created for a fixed duration.

The designation of ________ is used for businesses that are operating under a trade name.

Which of the following is true of creating a sole proprietorship?

A general partnership agreement must always be in writing to be considered legal.

Which of the following is true of the liability of an incoming partner?

General partners have ________ for the debts and obligations of the partnership.

Receipt of a share of business profits is prima facie evidence of a general partnership.

Which of the following serves as a motive for an organization or venture to qualify as a partnership?

How are assets distributed after the dissolution of a general partnership?

A sole proprietor is legally responsible for the business's contracts.

The dissolution of a general partnership discharges the liability of an outgoing partner for existing partnership debts and obligations.

A sole proprietor has limited personal liability.

The change in the relationship of partners in a partnership caused by any partner ceasing to be associated in the carrying on of the business is known as ________.

A general partnership cannot operate under the name of any one of the partners; the name has to represent all the partners if a fictitious name is not being adopted.

The term indemnification refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership.

Inference of the existence of a general partnership can be drawn if profits are received and ________.

The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is known as winding up.

Which of the following is a major form of conducting a business?

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, Mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection and E-Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, Real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, Trusts, and Estates

Family Law

International and World Trade Law

Filters