Question 1

Sol and Thom agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Accepted Answer

A)  filed in the appropriate state office.
B)  in writing.
C)  signed by a witness.
D)  all of the choices.E) B) and C)
F) None of the above

Question 2

A limited partner can force the dissolution of a limited partnership even if the other partners want to continue the business.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

Accepted Answer

A)  effect on the business.
B)  effort.
C)  capital contribution.
D)  none of the choices.E) B) and C)
F) A) and D)

Question 5

At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.

Accepted Answer

A) True 
 B)False

Question 6

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Accepted Answer

A)  access in proportion to their participation in management of the firm.
B)  access to the parts that directly relate to their capital contributions.
C)  no access.
D)  complete access.E) C) and D)
F) A) and B)

Question 7

Shih was the manager of Thai Bistro, a restaurant specializing in Southeast Asian foods. Shih opened a bank account in Thai Bistro's name, signing the account signature card as "owner." Umeko, who was often at Thai Bistro and had free access to its office, told others that she was "an owner" and "a partner." She also opened a bank account in Thai Bistro's name, and signed the account signature card as "owner." Shih told Vijay, the owner of Wong Noodles Inc., that Umeko was a member of a partnership that owned Thai Bistro. On this basis, Wong Noodles delivered its goods to Thai Bistro on credit. In fact, Thai Bistro was owned by a corporation. When the unpaid account totaled more than $10,000, Wong Noodles filed a suit against Umeko to collect. On what basis might Umeko be liable for the debt?

Accepted Answer

The theory under which Umeko would most ...

Question 8

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

Accepted Answer

A) True 
 B)False

Question 9

Rosa is a partner in Sugar & Spice, a partnership consisting of the owners of a bakery. Sugar & Spice incurs debt for new ovens. With respect to this debt, Rosa is

Accepted Answer

A)  not liable.
B)  only liable to the amount of her capital contribution.
C)  only liable in proportion to the number of partners in the firm.
D)  personally liable to the full extent.E) A) and B)
F) A) and C)

Question 10

A partner who withdraws from a partnership for a term before its expiration date can be held liable for any resulting losses.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

When there is no formal, written partnership agreement, an agreement to form a partnership is unenforceable .

Accepted Answer

A) True 
 B)False

Question 13

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

Accepted Answer

A) True 
 B)False

Question 14

Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of the partnership.

Accepted Answer

A) True 
 B)False

Question 15

A court can order the dissolution of a partnership if the business can only be operated at a loss.

Accepted Answer

A) True 
 B)False

Question 16

Amber owns and operates Bistro Café in space leased in a building owned by Ciera. The lease requires a base rent of $1,500, plus 10 percent of Bistro's profits, each month. The term is two years. Amber and Ciera are

Accepted Answer

A)  not partners, because Ciera does not have an ownership interest or management rights in Bistro.
B)  not partners, because the lease includes "base rent."
C)  not partners, because the rent includes only 10 percent of the profits.
D)  partners in a partnership for two years.E) All of the above
F) None of the above

Question 17

One of the essential elements of a partnership is an equal right to be involved in the management of the business.

Accepted Answer

A) True 
 B)False

Question 18

Blake is one of three partners in Commercial Custodial. With respect to Blake's interest in the firm, when she dies, her heirs are most likely entitled to

Accepted Answer

A)  nothing.
B)  a payout of her capital contribution without more.
C)  the buyout price paid by the firm for the interest.
D)  one-third of the value of the interest.E) C) and D)
F) B) and D)

Question 19

In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm.

Accepted Answer

A) True 
 B)False

Question 20

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts

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) All of the above
F) B) and C)

Exam 35: All Forms of Partnerships

Correct Answer
verified
The theory under which Umeko would most ...
View Answer

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts

Correct Answer
verified

A court can order the dissolution of a partnership if the business can only be operated at a loss.

Correct Answer
verified

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

Correct Answer
verified

Sol and Thom agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Correct Answer
verified

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Correct Answer
verified

One of the essential elements of a partnership is an equal right to be involved in the management of the business.

Correct Answer
verified

Blake is one of three partners in Commercial Custodial. With respect to Blake's interest in the firm, when she dies, her heirs are most likely entitled to

Correct Answer
verified

In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm.

Correct Answer
verified

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

Correct Answer
verified

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

Correct Answer
verified

At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.

Correct Answer
verified

A limited partner can force the dissolution of a limited partnership even if the other partners want to continue the business.

Correct Answer
verified

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

Correct Answer
verified

When there is no formal, written partnership agreement, an agreement to form a partnership is unenforceable .

Correct Answer
verified

A partner who withdraws from a partnership for a term before its expiration date can be held liable for any resulting losses.

Correct Answer
verified

Rosa is a partner in Sugar & Spice, a partnership consisting of the owners of a bakery. Sugar & Spice incurs debt for new ovens. With respect to this debt, Rosa is

Correct Answer
verified

Amber owns and operates Bistro Café in space leased in a building owned by Ciera. The lease requires a base rent of $1,500, plus 10 percent of Bistro's profits, each month. The term is two years. Amber and Ciera are

Correct Answer
verified

Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of the partnership.

Correct Answer
verified

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

Correct Answer
verified

Exam 35: All Forms of Partnerships

Correct AnswerverifiedThe theory under which Umeko would most ...View AnswerShow Answer

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts

Correct AnswerverifiedShow Answer

A court can order the dissolution of a partnership if the business can only be operated at a loss.

Correct AnswerverifiedShow Answer

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

Correct AnswerverifiedShow Answer

Sol and Thom agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Correct AnswerverifiedShow Answer

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Correct AnswerverifiedShow Answer

One of the essential elements of a partnership is an equal right to be involved in the management of the business.

Correct AnswerverifiedShow Answer

Blake is one of three partners in Commercial Custodial. With respect to Blake's interest in the firm, when she dies, her heirs are most likely entitled to

Correct AnswerverifiedShow Answer

In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm.

Correct AnswerverifiedShow Answer

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.

Correct AnswerverifiedShow Answer

A limited partner can force the dissolution of a limited partnership even if the other partners want to continue the business.

Correct AnswerverifiedShow Answer

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

Correct AnswerverifiedShow Answer

When there is no formal, written partnership agreement, an agreement to form a partnership is unenforceable .

Correct AnswerverifiedShow Answer

A partner who withdraws from a partnership for a term before its expiration date can be held liable for any resulting losses.

Correct AnswerverifiedShow Answer

Rosa is a partner in Sugar & Spice, a partnership consisting of the owners of a bakery. Sugar & Spice incurs debt for new ovens. With respect to this debt, Rosa is

Correct AnswerverifiedShow Answer

Amber owns and operates Bistro Café in space leased in a building owned by Ciera. The lease requires a base rent of $1,500, plus 10 percent of Bistro's profits, each month. The term is two years. Amber and Ciera are

Correct AnswerverifiedShow Answer

Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of the partnership.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified
The theory under which Umeko would most ...
View Answer

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
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Correct Answer
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Correct Answer
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Correct Answer
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