Question 1

Fresco and Garcia form a partnership-HVAC Pros. Garcia's capital contribution is $10,000, and Fresco's is $15,000. The partnership agreement provides that profits are to be shared, with 40 percent for Garcia and 60 percent for Fresco. Later, Garcia makes a $10,000 loan to the partnership when it needs working capital. When the partnership is dissolved, its assets are $50,000, and its debts are $8,000. How should the assets be distributed?

Accepted Answer

On the dissolution and winding up of a p...

Question 2

Gwen and Hera do business as G&H Civil Engineers, a partnership. The Uniform Partnership Act governs the firm

Accepted Answer

A)  in the absence of an express agreement.
B)  in the absence of an implied agreement.
C)  only under an express agreement.
D)  under all circumstances.E) A) and C)
F) A) and B)

Question 3

Dissociation terminates some of the rights of the dissociated partner, requires the firm to buy his or her interest, and alters the parties' liability to third parties.

Accepted Answer

A) True 
 B)False

Question 4

A partner is liable for simple negligence in judgment in conducting partnership business because such an act implies intent to engage in misconduct.

Accepted Answer

A) True 
 B)False

Question 5

Oscar is a partner in Party Caterers. Oscar's death will

Accepted Answer

A)  dissolve the partnership.
B)  breach the partnership agreement.
C)  dissociate the partner from the firm.
D)  wind up the business.E) C) and D)
F) All of the above

Question 6

Only a managing partner has the right to full and complete information concerning the conduct of all aspects of partnership business.

Accepted Answer

A) True 
 B)False

Question 7

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. Thieu is the senior partner. With respect to management decisions

Accepted Answer

A)  a majority of the partners must agree.
B)  Shan rules.
C)  Thieu decides.
D)  unanimous consent is required.E) B) and C)
F) None of the above

Question 8

To eliminate costly negotiations or litigation, partners may agree on how the firm's assets will be valued or divided if the partnership dissolves.

Accepted Answer

A) True 
 B)False

Question 9

A single person carrying on a business for profit, with control over its operation, can constitute a partnership.

Accepted Answer

A) True 
 B)False

Question 10

Cathy, Don, and Ethel are partners in Fruit Orchard Farms. Cathy gives notice to quit the firm, which otherwise continues to do business. This is

Accepted Answer

A)  dissociation.
B)  dissolution.
C)  unethical.
D)  illegal.E) A) and B)
F) A) and C)

Question 11

Generally, the law recognizes a partnership as an independent entity .

Accepted Answer

A) True 
 B)False

Question 12

A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

Accepted Answer

A) True 
 B)False

Exam 35: All Forms of Partnerships

Correct Answer
verified
On the dissolution and winding up of a p...
View Answer

Only a managing partner has the right to full and complete information concerning the conduct of all aspects of partnership business.

Correct Answer
verified

Dissociation terminates some of the rights of the dissociated partner, requires the firm to buy his or her interest, and alters the parties' liability to third parties.

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. Thieu is the senior partner. With respect to management decisions

Correct Answer
verified

Cathy, Don, and Ethel are partners in Fruit Orchard Farms. Cathy gives notice to quit the firm, which otherwise continues to do business. This is

Correct Answer
verified

A partner is liable for simple negligence in judgment in conducting partnership business because such an act implies intent to engage in misconduct.

Correct Answer
verified

A single person carrying on a business for profit, with control over its operation, can constitute a partnership.

Correct Answer
verified

Gwen and Hera do business as G&H Civil Engineers, a partnership. The Uniform Partnership Act governs the firm

Correct Answer
verified

A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

Correct Answer
verified

Generally, the law recognizes a partnership as an independent entity .

Correct Answer
verified

To eliminate costly negotiations or litigation, partners may agree on how the firm's assets will be valued or divided if the partnership dissolves.

Correct Answer
verified

Oscar is a partner in Party Caterers. Oscar's death will

Correct Answer
verified

Exam 35: All Forms of Partnerships

Correct AnswerverifiedOn the dissolution and winding up of a p...View AnswerShow Answer

Only a managing partner has the right to full and complete information concerning the conduct of all aspects of partnership business.

Correct AnswerverifiedShow Answer

Dissociation terminates some of the rights of the dissociated partner, requires the firm to buy his or her interest, and alters the parties' liability to third parties.

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. Thieu is the senior partner. With respect to management decisions

Correct AnswerverifiedShow Answer

Cathy, Don, and Ethel are partners in Fruit Orchard Farms. Cathy gives notice to quit the firm, which otherwise continues to do business. This is

Correct AnswerverifiedShow Answer

A partner is liable for simple negligence in judgment in conducting partnership business because such an act implies intent to engage in misconduct.

Correct AnswerverifiedShow Answer

A single person carrying on a business for profit, with control over its operation, can constitute a partnership.

Correct AnswerverifiedShow Answer

Gwen and Hera do business as G&H Civil Engineers, a partnership. The Uniform Partnership Act governs the firm

Correct AnswerverifiedShow Answer

A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

Correct AnswerverifiedShow Answer

Generally, the law recognizes a partnership as an independent entity .

Correct AnswerverifiedShow Answer

To eliminate costly negotiations or litigation, partners may agree on how the firm's assets will be valued or divided if the partnership dissolves.

Correct AnswerverifiedShow Answer

Oscar is a partner in Party Caterers. Oscar's death will

Correct AnswerverifiedShow Answer

Correct Answer
verified
On the dissolution and winding up of a p...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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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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