Question 1

Lisa entered into a limited partnership as a limited partner by investing $25,000 in cash.There were fifty limited partners and twenty general partners.The partners elected a management committee that included two of the general partners and Lisa as one of the limited partners.The certificate of limited partnership was completed,but was filed with the wrong office.This partnership then commenced business by entering into numerous transactions.Some of the parties it conducted business with assumed that the partnership was a general partnership,because they searched the records of the secretary of state and found no certificate of limited partnership or any other record.Others assumed that it was a general partnership,but had not actually searched the filings.Still others assumed that it was a limited partnership.Among those who assumed it was a limited partnership,some assumed that Lisa was a general partner and others did not.Discuss Lisa's situation with respect to personal liability for partnership debts.

Accepted Answer

Lisa would have personal liability to a ...

Question 2

An agreement to share losses of a business is strong evidence of a general partnership.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true about articles of limited partnership?

Accepted Answer

A)   They must be filed along with the certificate of limited partnership.
B)   The articles of limited partnership apply only to the general partners.
C)   Without articles of limited partnership, the partnership will be treated as a general partnership.
D)   If there are no articles of limited partnership, the certificate of limited partnership will serve as the articles.
E)   Preparation of the articles of limited partnership is required by law in all states.F) C) and D)
G) A) and B)

Question 4

A limited partnership must have one or more general partners and one or more limited partners.

Accepted Answer

A) True 
 B)False

Question 5

Cindy is one of fifty limited partners in a real estate investment limited partnership.The general partner is Evergreen Corporation.Evergreen Corporation invested $500,000 in the partnership,and each of the limited partners,who are all natural persons,invested $10,000.Evergreen has four shareholders.If the real estate partnership is dissolved at a time when it has debts exceeding assets,which of the following is true,assuming the limited partners took no steps to jeopardize their status as limited partners?

Accepted Answer

A)   Because having a corporation means that no partner in the limited partnership has unlimited liability, the limited partners would have unlimited liability.
B)   Because having a corporation means that no partner in the limited partnership has unlimited liability, the shareholders of the corporation would have unlimited liability.
C)   Neither the corporation nor the limited partners would be required to contribute any assets toward the satisfaction of the unpaid obligations of the limited partnership.
D)   The limited partners would not need to contribute any additional amounts toward satisfaction of the debts, but the assets of the corporation are available for this purpose.
E)   The limited partners must contribute any and all amounts necessary to satisfy the debts, but the assets of the corporation cannot be seized.F) A) and E)
G) A) and D)

Question 6

An intrapreneur is a person who forms and operates a business.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true about the ability of a partner to withdraw from a general partnership?

Accepted Answer

A)   Partners always have both the power and the right to withdraw from a partnership.
B)   Partners always have the right, but not necessarily the power, to withdraw from a partnership.
C)   Partners always have the power, but not necessarily the right, to withdraw from a partnership.
D)   In some cases, partners have neither the right nor the power to withdraw from a partnership.
E)   Partners always have the power to withdraw from a partnership and, under the Uniform Partnership Act, the right to withdraw from a partnership within thirty days after it is formed.F) C) and D)
G) B) and E)

Question 8

General partnerships have been recognized in this country only since the end of the Civil War.

Accepted Answer

A) True 
 B)False

Question 9

A partnership agreement provision that differs from the provisions of the Uniform Partnership Act is automatically void.

Accepted Answer

A) True 
 B)False

Question 10

No inference of the existence of a general partnership is drawn if profits are received in payment of rent owed to a landlord.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true about the Uniform Partnership Act (UPA?)

Accepted Answer

A)   An attempted partnership agreement in a state where the UPA applies will be unenforceable.
B)   A partnership agreement is generally enforceable, except in situations where its terms differ from the provisions of the UPA.
C)   The UPA can be thought of as a "gap-filling" statute that applies when a partnership has no partnership agreement provision addressing a particular issue.
D)   The UPA requires that partnership agreements be in writing in order to be enforceable.
E)   The UPA prohibits individuals from varying its terms in partnership agreements.F) C) and D)
G) C) and E)

Question 12

Most businesses started by entrepreneurs are small.

Accepted Answer

A) True 
 B)False

Question 13

No inference of the existence of a general partnership is drawn if profits are received in payment of interest owed on a loan.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not required to be included in a certificate of limited partnership?

Accepted Answer

A)   the general character of the business
B)   the amount of capital contributed by each partner
C)   the name and business address of each limited and general partner
D)   the portion of profits to be distributed to each limited and general partner
E)   the latest date on which the limited partnership is to dissolveF) A) and E)
G) C) and E)

Question 15

A limited partnership is required to have at least:

Accepted Answer

A)   two limited partners.
B)   one general partner, and two limited partners.
C)   one general partner, and one limited partner.
D)   two general partners.
E)   two partners, who can be any mix of limited and general partners.F) A) and B)
G) A) and E)

Question 16

A general partnership may be formed with little or no formality.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true about a corporation being a general partner in a limited partnership?

Accepted Answer

A)   A corporation cannot be a general partner in a limited partnership.
B)   A corporation can be a general partner in a limited partnership, but only if it is not the sole general partner.
C)   A corporation can be a general partner in a limited partnership, but only if there is at least one other general partner.
D)   A corporation can be a general partner in a limited partnership, even if it is the only general partner.
E)   A corporation can be a general partner in a limited partnership, but only if another corporation is a limited partner.F) A) and D)
G) A) and C)

Question 18

A limited partnership has two (2)types of partners: 1)general partners; and 2)limited partners.

Accepted Answer

A) True 
 B)False

Question 19

If a partner must pay a third party who was injured due to a tort committed by another party,the partner who had to pay can seek recovery for the full amount from the partner who committed the tort.

Accepted Answer

A) True 
 B)False

Question 20

A general partnership is also known as a(n) ________ partnership.

Accepted Answer

A)   conditional
B)   unconditional
C)   express
D)   implied
E)   ordinaryF) B) and D)
G) B) and E)

Exam 26: Small Business, Entrepreneurship, and Partnerships

If a partner must pay a third party who was injured due to a tort committed by another party,the partner who had to pay can seek recovery for the full amount from the partner who committed the tort.

Correct Answer
verified

No inference of the existence of a general partnership is drawn if profits are received in payment of interest owed on a loan.

Correct Answer
verified

A general partnership may be formed with little or no formality.

Correct Answer
verified

General partnerships have been recognized in this country only since the end of the Civil War.

Correct Answer
verified

A partnership agreement provision that differs from the provisions of the Uniform Partnership Act is automatically void.

Correct Answer
verified

Which of the following is not required to be included in a certificate of limited partnership?

Correct Answer
verified

Which of the following is true about the Uniform Partnership Act (UPA?)

Correct Answer
verified

Which of the following is true about a corporation being a general partner in a limited partnership?

Correct Answer
verified

Most businesses started by entrepreneurs are small.

Correct Answer
verified

An intrapreneur is a person who forms and operates a business.

Correct Answer
verified

An agreement to share losses of a business is strong evidence of a general partnership.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Lisa would have personal liability to a ...
View Answer

A limited partnership must have one or more general partners and one or more limited partners.

Correct Answer
verified

Which of the following is true about the ability of a partner to withdraw from a general partnership?

Correct Answer
verified

No inference of the existence of a general partnership is drawn if profits are received in payment of rent owed to a landlord.

Correct Answer
verified

Which of the following is true about articles of limited partnership?

Correct Answer
verified

A limited partnership has two (2)types of partners: 1)general partners; and 2)limited partners.

Correct Answer
verified

A limited partnership is required to have at least:

Correct Answer
verified

A general partnership is also known as a(n) ________ partnership.

Correct Answer
verified

Exam 26: Small Business, Entrepreneurship, and Partnerships

If a partner must pay a third party who was injured due to a tort committed by another party,the partner who had to pay can seek recovery for the full amount from the partner who committed the tort.

Correct AnswerverifiedShow Answer

No inference of the existence of a general partnership is drawn if profits are received in payment of interest owed on a loan.

Correct AnswerverifiedShow Answer

A general partnership may be formed with little or no formality.

Correct AnswerverifiedShow Answer

General partnerships have been recognized in this country only since the end of the Civil War.

Correct AnswerverifiedShow Answer

A partnership agreement provision that differs from the provisions of the Uniform Partnership Act is automatically void.

Correct AnswerverifiedShow Answer

Which of the following is not required to be included in a certificate of limited partnership?

Correct AnswerverifiedShow Answer

Which of the following is true about the Uniform Partnership Act (UPA?)

Correct AnswerverifiedShow Answer

Which of the following is true about a corporation being a general partner in a limited partnership?

Correct AnswerverifiedShow Answer

Most businesses started by entrepreneurs are small.

Correct AnswerverifiedShow Answer

An intrapreneur is a person who forms and operates a business.

Correct AnswerverifiedShow Answer

An agreement to share losses of a business is strong evidence of a general partnership.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedLisa would have personal liability to a ...View AnswerShow Answer

A limited partnership must have one or more general partners and one or more limited partners.

Correct AnswerverifiedShow Answer

Which of the following is true about the ability of a partner to withdraw from a general partnership?

Correct AnswerverifiedShow Answer

No inference of the existence of a general partnership is drawn if profits are received in payment of rent owed to a landlord.

Correct AnswerverifiedShow Answer

Which of the following is true about articles of limited partnership?

Correct AnswerverifiedShow Answer

A limited partnership has two (2)types of partners: 1)general partners; and 2)limited partners.

Correct AnswerverifiedShow Answer

A limited partnership is required to have at least:

Correct AnswerverifiedShow Answer

A general partnership is also known as a(n) ________ partnership.

Correct AnswerverifiedShow Answer

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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Lisa would have personal liability to a ...
View Answer

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Correct Answer
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Correct Answer
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