Question 1

Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with

Accepted Answer

A)  Jana and Milo.
B)  Jana.
C)  Milo.
D)  Jana and Kwan.E) A) and B)
F) A) and C)

Question 2

Stef and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

Accepted Answer

A)  only if a copy of the agreement is filed in the appropriate state office.
B)  only if the agreement is printed in hard copy and signed by the parties.
C)  only if the parties exchange valid consideration.
D)  without more.E) B) and D)
F) A) and B)

Question 3

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) C) and D)
F) B) and C)

Question 4

When a partnership that was supposed to dissolve after one partner's death continues to operate, a court is estopped from ordering its dissolution.

Accepted Answer

A) True 
 B)False

Question 5

A key element of a partnership is the intent to act in good faith.

Accepted Answer

A) True 
 B)False

Question 6

Dissociation occurs when a partner ceases to be associated in the carrying on of the partnership business.

Accepted Answer

A) True 
 B)False

Question 7

A limited liability partnership allows professionals to avoid personal liability for the malpractice of other partners.

Accepted Answer

A) True 
 B)False

Question 8

A partnership agreement must apportion profits and losses in the same ratio as the partners' investment of time and capital in the business.

Accepted Answer

A) True 
 B)False

Question 9

Brad and Carol are partners in Doctors for Children, a medical clinic. Brad's dissociation from the firm results in

Accepted Answer

A)  the automatic termination of the firm's legal existence.
B)  the partnership's buyout of Brad's interest in the firm.
C)  the immediate maturity of all partnership debts.
D)  the temporary suspension of the partnership's business.E) None of the above
F) B) and C)

Question 10

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 11

Kim and Lyle are partners in K&L Sales, which exports technical equipment. If Congress declares that the equipment can no longer be exported, K&L

Accepted Answer

A)  can continue its business for one twelve-month period.
B)  can continue its business indefinitely.
C)  dissolves immediately unless the partners change its business.
D)  is immediately subject to criminal prosecution and penalties.E) A) and B)
F) All of the above

Question 12

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 13

A partner can bring an action for an accounting during the term of the partnership and the firm's property can be sold to satisfy the partner's personal debts.

Accepted Answer

A) True 
 B)False

Question 14

Cal, Dex, and Erin agree to be partners in Fajitas, a food cart outfit, splitting the profits equally. Cal contributes 65 percent of the capital. When Fajitas is dissolved, its liabilities are greater than its assets. The losses are paid by

Accepted Answer

A)  all of the partners in proportion to their capital contributions.
B)  all of the partners in proportion to their shares of the profits.
C)  Cal because he contributed most of the capital.
D)  Dex and Erin because they contributed the least of the capital.E) A) and C)
F) A) and B)

Question 15

Every act of a partner concerning partnership business binds the firm.

Accepted Answer

A) True 
 B)False

Question 16

The payment of a percentage of profits from the ownership of property to repay a loan does not prove the existence of a partnership.

Accepted Answer

A) True 
 B)False

Question 17

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) A) and B)
F) B) and C)

Question 18

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 19

During the winding up stage of dissolution, no party can make a claim on the partnership assets.

Accepted Answer

A) True 
 B)False

Question 20

Development LP is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals, including Ethan. Ethan loses his limited liability if he

Accepted Answer

A)  participates in the firm's management.
B)  does not participate in the firm's management.
C)  invests in a project that the firm has declined.
D)  votes to sell or dissolve the firm.E) All of the above
F) B) and D)

Exam 35: All Forms of Partnerships

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

Correct AnswerverifiedShow Answer

Development LP is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals, including Ethan. Ethan loses his limited liability if he

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A limited liability partnership allows professionals to avoid personal liability for the malpractice of other partners.

Correct AnswerverifiedShow Answer

The payment of a percentage of profits from the ownership of property to repay a loan does not prove the existence of a partnership.

Correct AnswerverifiedShow Answer

Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with

Correct AnswerverifiedShow Answer

Cal, Dex, and Erin agree to be partners in Fajitas, a food cart outfit, splitting the profits equally. Cal contributes 65 percent of the capital. When Fajitas is dissolved, its liabilities are greater than its assets. The losses are paid by

Correct AnswerverifiedShow Answer

Stef and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

Correct AnswerverifiedShow Answer

During the winding up stage of dissolution, no party can make a claim on the partnership assets.

Correct AnswerverifiedShow Answer

Dissociation occurs when a partner ceases to be associated in the carrying on of the partnership business.

Correct AnswerverifiedShow Answer

Every act of a partner concerning partnership business binds the firm.

Correct AnswerverifiedShow Answer

Kim and Lyle are partners in K&L Sales, which exports technical equipment. If Congress declares that the equipment can no longer be exported, K&L

Correct AnswerverifiedShow Answer

A key element of a partnership is the intent to act in good faith.

Correct AnswerverifiedShow Answer

A partner can bring an action for an accounting during the term of the partnership and the firm's property can be sold to satisfy the partner's personal debts.

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

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

A partnership agreement must apportion profits and losses in the same ratio as the partners' investment of time and capital in the business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Brad and Carol are partners in Doctors for Children, a medical clinic. Brad's dissociation from the firm results in

Correct AnswerverifiedShow Answer

When a partnership that was supposed to dissolve after one partner's death continues to operate, a court is estopped from ordering its dissolution.

Correct AnswerverifiedShow Answer

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