Question 1

What is an assumed name statute? Why have many states adopted such statutes?

Accepted Answer

An assumed or fictitious name statute applies to businesses that operate under a fictitious or assumed name.Such a statute provides that a certificate must be filed with the state showing the names and addresses of the partners that make up a partnership and what name the partnership assumes.Many states have this statute so that interested parties,customers,creditors,etc.can find out the names of the partners.

Question 2

The form of business association known as a partnership can be traced to ancient Babylonia and classical Greece and was used in England during the Middle Ages.

Accepted Answer

A) True 
 B)False

Question 3

A partner who has no right to participate in control of the business and who has limited liability is a:

Accepted Answer

A)   general partner.
B)   nominal partner.
C)   secret partner.
D)   limited partner.E) A) and B)
F) A) and C)

Question 4

A distribution in a partnership may be:

Accepted Answer

A)   a payment made to compensate a partner for services rendered to the partnership.
B)   a division of profits.
C)   repayment of a loan to a partner.
D)   All of these are types of distributions in partnerships.E) All of the above
F) A) and B)

Question 5

Which of the following is NOT an advantage of a partnership?

Accepted Answer

A)   Partners' income taxes may be less than the income taxes would be on a corporation.
B)   Each partner has limited liability.
C)   It is possible to bring together more managerial skills than in a sole proprietorship.
D)   It is possible to bring together more capital than in a sole proprietorship.E) A) and B)
F) A) and C) B

Question 6

The principal legal duties imposed upon partners in their relations with one another include:

Accepted Answer

A)   the fiduciary duty or the duty of loyalty.
B)   the duty to compensate other partners for their time and efforts spent on partnership business.
C)   a duty to devote full time and expertise to the partnership.
D)   a duty to vote for candidates that will help the business.E) None of the above
F) A) and B)

Question 7

In which of the following situations will the inference of the existence of a partnership be drawn from the receipt of profits of a business?

Accepted Answer

A)   Where payments of a debt are made to a creditor in installments from the profits of the partnership
B)   Where wages are paid to an employee who is not also an owner
C)   Where an annuity is paid to the widow of a deceased partner from partnership profits
D)   Neither the creditor,the employee,nor the widow in these situations will be considered a partner under the guidelines in the RUPA.E) All of the above
F) None of the above

Question 8

The RUPA treats a partnership as a legal entity in all but which of the following respects?

Accepted Answer

A)   Title to partnership property
B)   Continuity of existence
C)   Legal actions by and against the partnership
D)   Unlimited liability for partnership obligationsE) C) and D)
F) None of the above

Question 9

A corporation may not be a partner in a partnership.

Accepted Answer

A) True 
 B)False

Question 10

Under the RUPA,a loan from a partner to the partnership is treated the same as loans of a person not a partner,subject to:

Accepted Answer

A)   fraudulent transfer law.
B)   the law of avoidable preferences under the Bankruptcy Act.
C)   general debtor-creditor law.
D)   All of these.E) A) and C)
F) B) and D) D

Question 11

Under the RUPA,no person may become a member of a partnership without the consent of all the partners.

Accepted Answer

A) True 
 B)False

Question 12

The proportion in which partners bear losses depends upon their relative capital contributions.

Accepted Answer

A) True 
 B)False

Question 13

A distinguishing characteristic of a business trust is that:

Accepted Answer

A)   the trust estate is devoted to the conduct of a business.
B)   each beneficiary must have the consent of all the other beneficiaries in order to sell or transfer his interest in the trust.
C)   the trustees and beneficiaries share the functions of management and control.
D)   the trust can be established with no formality.E) A) and B)
F) All of the above

Question 14

Discuss the concept of "partnership property." What is the controlling factor in whether property belongs to the partnership or to one or more of the partners individually?

Accepted Answer

"Partnership property" is that which is ...

Question 15

A judicial lien against a partner's transferable interest in a partnership is known as a(n) :

Accepted Answer

A)   legal aggregate.
B)   delegation of assets.
C)   charging order.
D)   assignment.E) B) and C)
F) A) and D)

Question 16

Partners may elect to have the partnership not be a separate taxable entity,so that only the partners are taxed.

Accepted Answer

A) True 
 B)False

Question 17

The Oak Grove Partnership decided it would buy personal computers for use by each partner.Unknown to the other partners,Cromwell,a partner,had an ownership interest in a computer store and thought he could get the computers for the partnership at the best price because of his inside position.He did,in fact,obtain eight computers at only $150 above the manufacturer's price,which was $250 less than the next lowest bid for each computer.What consequence?

Accepted Answer

A)   Because Cromwell did not tell his partners of his inside position with the computer store,there will be no sale.
B)   Since Cromwell obtained the lowest price available,the deal will go through.
C)   Cromwell will have to give his part of the sales profits to the partnership.
D)   Cromwell will have to rescind the contract and go with the next highest bidder.E) All of the above
F) B) and C)

Question 18

Which of the following is not true regarding a partnership name?

Accepted Answer

A)   The name selected may not be the same as or deceptively similar to the name of any other existing business.
B)   It may be a fictitious name.
C)   It may not be likely to indicate to the public that it is a corporation.
D)   It may not be the name of any one of the partners.E) C) and D)
F) None of the above

Question 19

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Accepted Answer

The form should be pursuant to the laws ...

Question 20

Which of the following expresses the right one has to choose her partners?

Accepted Answer

A)   Partnership by estoppel
B)   Delectus personae
C)   Entity theory
D)   Fiduciary relationshipE) All of the above
F) C) and D)

Exam 30: Formation and Internal Relations of General Partnerships

What is an assumed name statute? Why have many states adopted such statutes?

The form of business association known as a partnership can be traced to ancient Babylonia and classical Greece and was used in England during the Middle Ages.

Correct Answer
verified

A partner who has no right to participate in control of the business and who has limited liability is a:

Correct Answer
verified

A distribution in a partnership may be:

Correct Answer
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Which of the following is NOT an advantage of a partnership?

Correct Answer
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B

The principal legal duties imposed upon partners in their relations with one another include:

Correct Answer
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In which of the following situations will the inference of the existence of a partnership be drawn from the receipt of profits of a business?

Correct Answer
verified

The RUPA treats a partnership as a legal entity in all but which of the following respects?

Correct Answer
verified

A corporation may not be a partner in a partnership.

Correct Answer
verified

Under the RUPA,a loan from a partner to the partnership is treated the same as loans of a person not a partner,subject to:

Correct Answer
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D

Under the RUPA,no person may become a member of a partnership without the consent of all the partners.

Correct Answer
verified

The proportion in which partners bear losses depends upon their relative capital contributions.

Correct Answer
verified

A distinguishing characteristic of a business trust is that:

Correct Answer
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Discuss the concept of "partnership property." What is the controlling factor in whether property belongs to the partnership or to one or more of the partners individually?

Correct Answer
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"Partnership property" is that which is ...
View Answer

A judicial lien against a partner's transferable interest in a partnership is known as a(n) :

Correct Answer
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Partners may elect to have the partnership not be a separate taxable entity,so that only the partners are taxed.

Correct Answer
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Correct Answer
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Which of the following is not true regarding a partnership name?

Correct Answer
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Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Correct Answer
verified
The form should be pursuant to the laws ...
View Answer

Which of the following expresses the right one has to choose her partners?

Correct Answer
verified

Exam 30: Formation and Internal Relations of General Partnerships

What is an assumed name statute? Why have many states adopted such statutes?

The form of business association known as a partnership can be traced to ancient Babylonia and classical Greece and was used in England during the Middle Ages.

Correct AnswerverifiedShow Answer

A partner who has no right to participate in control of the business and who has limited liability is a:

Correct AnswerverifiedShow Answer

A distribution in a partnership may be:

Correct AnswerverifiedShow Answer

Which of the following is NOT an advantage of a partnership?

Correct AnswerverifiedB

The principal legal duties imposed upon partners in their relations with one another include:

Correct AnswerverifiedShow Answer

In which of the following situations will the inference of the existence of a partnership be drawn from the receipt of profits of a business?

Correct AnswerverifiedShow Answer

The RUPA treats a partnership as a legal entity in all but which of the following respects?

Correct AnswerverifiedShow Answer

A corporation may not be a partner in a partnership.

Correct AnswerverifiedShow Answer

Under the RUPA,a loan from a partner to the partnership is treated the same as loans of a person not a partner,subject to:

Correct AnswerverifiedD

Under the RUPA,no person may become a member of a partnership without the consent of all the partners.

Correct AnswerverifiedShow Answer

The proportion in which partners bear losses depends upon their relative capital contributions.

Correct AnswerverifiedShow Answer

A distinguishing characteristic of a business trust is that:

Correct AnswerverifiedShow Answer

Discuss the concept of "partnership property." What is the controlling factor in whether property belongs to the partnership or to one or more of the partners individually?

Correct Answerverified"Partnership property" is that which is ...View AnswerShow Answer

A judicial lien against a partner's transferable interest in a partnership is known as a(n) :

Correct AnswerverifiedShow Answer

Partners may elect to have the partnership not be a separate taxable entity,so that only the partners are taxed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not true regarding a partnership name?

Correct AnswerverifiedShow Answer

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Correct AnswerverifiedThe form should be pursuant to the laws ...View AnswerShow Answer

Which of the following expresses the right one has to choose her partners?

Correct AnswerverifiedShow Answer

Correct Answer
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B

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D

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"Partnership property" is that which is ...
View Answer

Correct Answer
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Correct Answer
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The form should be pursuant to the laws ...
View Answer

Correct Answer
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