Question 1

Nora and Owen do business as Property & Profit, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit. To her firm, Nora is liable for a breach of

Accepted Answer

A)   the duty of care.
B)   contract.
C)   the duty of loyalty.
D)   none of the choices.E) A) and C)
F) C) and D)

Question 2

Regardless of the partners' consent or agreement, the voluntary dissociation of a partner begins the dissolution of the partnership.

Accepted Answer

A) True 
 B)False

Question 3

Del and Efron want to form a limited partnership to do general business bookkeeping with an emphasis on tax accounting. In most states, a limited partnership will be created when Del and Efron

Accepted Answer

A)   file a certificate of limited partnership.
B)   execute a partnership agreement.
C)   accept their first client.
D)   make their capital contributions.E) B) and D)
F) B) and C)

Question 4

A partner always has the right to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Question 5

Resort Gift Shop is operated as a partnership, with five partners. Shan has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ted is the senior partner. With respect to management decisions

Accepted Answer

A)   a majority of the partners must agree.
B)   Shan rules.
C)   Ted decides.
D)   unanimous consent is required.E) All of the above
F) A) and D)

Question 6

Otto is a limited partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligations

Accepted Answer

A)   in proportion to the number of partners in the firm.
B)   to no extent.
C)   to the extent of his capital contribution to the firm.
D)   to the full extent.E) A) and C)
F) A) and D)

Question 7

The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among the partners.

Accepted Answer

A) True 
 B)False

Question 8

A partner always has the power to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Question 9

One of the essential elements of a partnership is good faith.

Accepted Answer

A) True 
 B)False

Question 10

Glen is a partner in Home Builders, a construction firm. Glen's assignment of his interest in the partnership to Investment Consultants results in

Accepted Answer

A)   nothing with respect to Home Builders.
B)   the automatic termination of Home Builders' legal existence.
C)   Glen's liability for all of Home Builders' debts.
D)   Glen's wrongful dissociation and liability for any damages.E) All of the above
F) B) and C)

Question 11

In a limited partnership, every partner has full responsibility for the management of the partnership and its obligations.

Accepted Answer

A) True 
 B)False

Question 12

Olav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn agree that Olav will continue to control the business. Olav and Quinn are not partners in Power Cells because

Accepted Answer

A)   they do not share the profits equally.
B)   their agreement does not provide for the sharing of losses.
C)   Olav started the firm before Quinn agreed to invest additional capital.
D)   they do not have joint control over the business.E) B) and C)
F) None of the above

Exam 31: All Forms of Partnership

The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among the partners.

Correct Answer
verified

Otto is a limited partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligations

Correct Answer
verified

Regardless of the partners' consent or agreement, the voluntary dissociation of a partner begins the dissolution of the partnership.

Correct Answer
verified

Resort Gift Shop is operated as a partnership, with five partners. Shan has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ted is the senior partner. With respect to management decisions

Correct Answer
verified

Olav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn agree that Olav will continue to control the business. Olav and Quinn are not partners in Power Cells because

Correct Answer
verified

A partner always has the power to dissociate from the partnership.

Correct Answer
verified

Del and Efron want to form a limited partnership to do general business bookkeeping with an emphasis on tax accounting. In most states, a limited partnership will be created when Del and Efron

Correct Answer
verified

Nora and Owen do business as Property & Profit, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit. To her firm, Nora is liable for a breach of

Correct Answer
verified

Glen is a partner in Home Builders, a construction firm. Glen's assignment of his interest in the partnership to Investment Consultants results in

Correct Answer
verified

A partner always has the right to dissociate from the partnership.

Correct Answer
verified

In a limited partnership, every partner has full responsibility for the management of the partnership and its obligations.

Correct Answer
verified

One of the essential elements of a partnership is good faith.

Correct Answer
verified

Exam 31: All Forms of Partnership

The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among the partners.

Correct AnswerverifiedShow Answer

Otto is a limited partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligations

Correct AnswerverifiedShow Answer

Regardless of the partners' consent or agreement, the voluntary dissociation of a partner begins the dissolution of the partnership.

Correct AnswerverifiedShow Answer

Resort Gift Shop is operated as a partnership, with five partners. Shan has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ted is the senior partner. With respect to management decisions

Correct AnswerverifiedShow Answer

Olav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn agree that Olav will continue to control the business. Olav and Quinn are not partners in Power Cells because

Correct AnswerverifiedShow Answer

A partner always has the power to dissociate from the partnership.

Correct AnswerverifiedShow Answer

Del and Efron want to form a limited partnership to do general business bookkeeping with an emphasis on tax accounting. In most states, a limited partnership will be created when Del and Efron

Correct AnswerverifiedShow Answer

Nora and Owen do business as Property & Profit, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit. To her firm, Nora is liable for a breach of

Correct AnswerverifiedShow Answer

Glen is a partner in Home Builders, a construction firm. Glen's assignment of his interest in the partnership to Investment Consultants results in

Correct AnswerverifiedShow Answer

A partner always has the right to dissociate from the partnership.

Correct AnswerverifiedShow Answer

In a limited partnership, every partner has full responsibility for the management of the partnership and its obligations.

Correct AnswerverifiedShow Answer

One of the essential elements of a partnership is good faith.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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