Question 1

A ________ is a document that is filed with the state that designates a trade name of a business.

Accepted Answer

A)  proprietorship statement 
B)  partnership agreement 
C)  fictitious business name statement 
D)  nomenclature affidavit 
A)  proprietorship statement 
B)  partnership agreement 
C)  fictitious business name statement 
D)  nomenclature affidavit

Question 2

The Revised Uniform Partnership Act is a federal statute that holds in all states.

Accepted Answer

A) True 
 B)False

Question 3

Jonathan Lopez wants to be his own boss and ventures into retailing fruit in the neighborhood after borrowing some money from his mother. While obtaining a license to carry out business in his city, Jonathan mentions the money he borrowed but forgets to specify what type of business undertaking his store will be. Under which of the following major forms of business is Jonathan's store listed by default?

Accepted Answer

A)  a general partnership 
B)  a sole proprietorship 
C)  a limited partnership 
D)  a limited liability corporation 
A)  a general partnership 
B)  a sole proprietorship 
C)  a limited partnership 
D)  a limited liability corporation

Question 4

General partnerships do not pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following best describes an entrepreneur?

Accepted Answer

A)  a person who forms and operates a business 
B)  a person who invests in an existing business 
C)  a person who lends capital to a new business 
D)  a person who derives a profit from a new or an existing business 
A)  a person who forms and operates a business 
B)  a person who invests in an existing business 
C)  a person who lends capital to a new business 
D)  a person who derives a profit from a new or an existing business

Question 6

If no other form of business organization is chosen in a business operated by only one person, the business is by default a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Indemnification 
B)  Proliferation 
C)  Lucubration 
D)  Fenestration 
A)  Indemnification 
B)  Proliferation 
C)  Lucubration 
D)  Fenestration

Question 8

Which of the following is true of profits and losses in a general partnership?

Accepted Answer

A)  The proportion of profit shared is equal to the general partner's initial investment. 
B)  Losses are shared equally by all general partners. 
C)  The general partner who proposed the idea of the business gets most profit. 
D)  The proportion of investment governs only the proportion of loss shared and not profit obtained. 
A)  The proportion of profit shared is equal to the general partner's initial investment. 
B)  Losses are shared equally by all general partners. 
C)  The general partner who proposed the idea of the business gets most profit. 
D)  The proportion of investment governs only the proportion of loss shared and not profit obtained.

Question 9

An ordinary partnership is also known as a ________.

Accepted Answer

A)  sole proprietorship 
B)  general partnership 
C)  limited partnership 
D)  limited liability company 
A)  sole proprietorship 
B)  general partnership 
C)  limited partnership 
D)  limited liability company

Question 10

A third party who sues to recover on a partnership contract need not name all the general partners in the lawsuit.

Accepted Answer

A) True 
 B)False

Question 11

Explain how a sole proprietorship is taxed.

Accepted Answer

A sole proprietorship is not a separate

Question 12

The Uniform Partnership Act's definition of a general partner includes other limited partnerships.

Accepted Answer

A) True 
 B)False

Question 13

The Uniform Partnership Act (UPA) provides that all general partners are entitled to remuneration for their performance in the partnership's business.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of a business operating as a sole proprietorship?

Accepted Answer

A)  It is not considered a separate legal entity from the owner. 
B)  It cannot be sold when the owner decides to do so. 
C)  It requires governmental approval when being transferred. 
D)  It has access to unrestricted capital by means of investments. 
A)  It is not considered a separate legal entity from the owner. 
B)  It cannot be sold when the owner decides to do so. 
C)  It requires governmental approval when being transferred. 
D)  It has access to unrestricted capital by means of investments.

Question 15

General partners owe a duty to inform their partners of all information they possess that is relevant to the affairs of the partnership.

Accepted Answer

A) True 
 B)False

Question 16

The designation of d.b.a. (doing business as) refers to the description for a business that is operating under a trade name.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of the management of a general partnership?

Accepted Answer

A)  The number of votes a general partner has depends on the proportion of his or her capital investment. 
B)  Partnership matters are decided by unanimous agreement only. 
C)  Only general partners in the board of directors have the authority to participate in the management. 
D)  If the vote is tied, the action being voted on is considered to be defeated. 
A)  The number of votes a general partner has depends on the proportion of his or her capital investment. 
B)  Partnership matters are decided by unanimous agreement only. 
C)  Only general partners in the board of directors have the authority to participate in the management. 
D)  If the vote is tied, the action being voted on is considered to be defeated.

Question 18

An association of two or more persons to carry on as co-owners of a business for profit is known as a(n) ________.

Accepted Answer

A)  limited partnership 
B)  sole proprietorship 
C)  corporation 
D)  general partnership 
A)  limited partnership 
B)  sole proprietorship 
C)  corporation 
D)  general partnership

Question 19

Explain, with an example, the duty of care owed by a general partner.

Accepted Answer

A general partner must use reasonable ca

Exam 34: Small Business, Entrepreneurship, and General Partnerships

A ________ is a document that is filed with the state that designates a trade name of a business.

The Revised Uniform Partnership Act is a federal statute that holds in all states.

General partnerships do not pay federal income taxes.

Which of the following best describes an entrepreneur?

If no other form of business organization is chosen in a business operated by only one person, the business is by default a sole proprietorship.

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

Which of the following is true of profits and losses in a general partnership?

An ordinary partnership is also known as a ________.

A third party who sues to recover on a partnership contract need not name all the general partners in the lawsuit.

Explain how a sole proprietorship is taxed.

The Uniform Partnership Act's definition of a general partner includes other limited partnerships.

The Uniform Partnership Act (UPA) provides that all general partners are entitled to remuneration for their performance in the partnership's business.

Which of the following is true of a business operating as a sole proprietorship?

General partners owe a duty to inform their partners of all information they possess that is relevant to the affairs of the partnership.

The designation of d.b.a. (doing business as) refers to the description for a business that is operating under a trade name.

Which of the following is true of the management of a general partnership?

An association of two or more persons to carry on as co-owners of a business for profit is known as a(n) ________.

Explain, with an example, the duty of care owed by a general partner.

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