Question 1

A limited partnership is dissolved

Accepted Answer

A)   when its term ends.
B)   by agreement among all partners.
C)   by the bankruptcy of a general partner.
D)   by any of these.E) All of the above
F) B) and D)

Question 2

If a sole proprietorship or partnership operates under a name that is different from its owner's, the name of the business must be registered and the owner identified.

Accepted Answer

A) True 
 B)False

Question 3

One of the advantages of the partnership form of organization is

Accepted Answer

A)   ease of transferring a partnership interest.
B)   limited liability for partnership debts.
C)   ease of organization.
D)   ease of settling disputes among the partners.E) A) and B)
F) B) and C)

Question 4

A partnership can be formed only by the express agreement of the parties.

Accepted Answer

A) True 
 B)False

Question 5

To avoid problems, the partnership agreement should contain provisions for settling disputes among the partners.

Accepted Answer

A) True 
 B)False

Question 6

Co-owners of a business are known as partners.

Accepted Answer

A) True 
 B)False

Question 7

A limited partnership is a hybrid between a(n) ____________________ and a partnership.

Accepted Answer

The answer of A limited partnership is a hybrid between...

Question 8

Most businesses in the United States are organized as sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 9

If a partner decides to start a new business, this must be approved by

Accepted Answer

A)   a two-thirds vote of the partners.
B)   a unanimous vote of the partners.
C)   the county in which the partnership is located.
D)   the stockholders.E) B) and C)
F) All of the above

Question 10

Parker was the sole proprietor of a toy store. The business had assets of $20,000 and debts of $40,000. What rights do the creditors of the store have?

Accepted Answer

The creditors may sue for a ju...

Question 11

A partnership may be terminated by

Accepted Answer

A)   the death of a partner.
B)   agreement among the partners.
C)   bankruptcy of the partnership.
D)   all of these.E) A) and B)
F) All of the above

Question 12

The disadvantage of the sole proprietorship is

Accepted Answer

A)   lack of flexibility in managing the business.
B)   unlimited liability for debts of the business.
C)   ease of formation.
D)   none of these.E) A) and C)
F) A) and D)

Question 13

A sole proprietor receives all the income from a business but also bears all losses.

Accepted Answer

A) True 
 B)False

Question 14

One who is known to the public as a partner and who is active in the partnership is a

Accepted Answer

A)   general partner.
B)   limited partner.
C)   silent partner.
D)   dormant partner.E) None of the above
F) A) and B)

Question 15

If a partner commits a tort, the other partners have ____________________ for the acts of that partner.

Accepted Answer

joint and ...

Question 16

A partnership is considered to be a legal entity for the purpose of

Accepted Answer

A)   ownership of property.
B)   federal taxes.
C)   liability to others.
D)   none of these.E) None of the above
F) A) and D)

Question 17

Archer, Lewis, and Kaplan were partners in a clothing store. Archer and Lewis did not like the present location of the store and wanted to move it to another street. Kaplan objected. While Kaplan was out of town, Archer and Lewis signed a lease for a store at another location. Is the lease binding on the partnership?

Accepted Answer

Yes. Archer and Lewis have the...

Question 18

Mack, Newsome, and Parks were partners in a bookstore. Newsome suffered a severe heart attack. Is the partnership terminated?

Accepted Answer

No, unless the partnership agr...

Question 19

A limited partner has no right to

Accepted Answer

A)   receive an accounting.
B)   inspect the partnership books.
C)   give advice to the partnership.
D)   participate in management.E) B) and C)
F) A) and B)

Question 20

Under certain circumstances, a joint venture may be treated as a corporation.

Accepted Answer

A) True 
 B)False

Exam 26: Sole Proprietorships, Partnerships, and Limited Liability Organizations

Correct Answer
verified
Yes. Archer and Lewis have the...
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If a partner commits a tort, the other partners have ____________________ for the acts of that partner.

Correct Answer
verified
joint and ...
View Answer

A limited partner has no right to

Correct Answer
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If a partner decides to start a new business, this must be approved by

Correct Answer
verified

A partnership can be formed only by the express agreement of the parties.

Correct Answer
verified

A limited partnership is dissolved

Correct Answer
verified

One of the advantages of the partnership form of organization is

Correct Answer
verified

To avoid problems, the partnership agreement should contain provisions for settling disputes among the partners.

Correct Answer
verified

Under certain circumstances, a joint venture may be treated as a corporation.

Correct Answer
verified

Co-owners of a business are known as partners.

Correct Answer
verified

Parker was the sole proprietor of a toy store. The business had assets of $20,000 and debts of $40,000. What rights do the creditors of the store have?

Correct Answer
verified
The creditors may sue for a ju...
View Answer

A sole proprietor receives all the income from a business but also bears all losses.

Correct Answer
verified

Most businesses in the United States are organized as sole proprietorships.

Correct Answer
verified

The disadvantage of the sole proprietorship is

Correct Answer
verified

One who is known to the public as a partner and who is active in the partnership is a

Correct Answer
verified

If a sole proprietorship or partnership operates under a name that is different from its owner's, the name of the business must be registered and the owner identified.

Correct Answer
verified

A partnership is considered to be a legal entity for the purpose of

Correct Answer
verified

A limited partnership is a hybrid between a(n) ____________________ and a partnership.

Correct Answer
verified

Mack, Newsome, and Parks were partners in a bookstore. Newsome suffered a severe heart attack. Is the partnership terminated?

Correct Answer
verified
No, unless the partnership agr...
View Answer

A partnership may be terminated by

Correct Answer
verified

Exam 26: Sole Proprietorships, Partnerships, and Limited Liability Organizations

Correct AnswerverifiedYes. Archer and Lewis have the...View AnswerShow Answer

If a partner commits a tort, the other partners have ____________________ for the acts of that partner.

Correct Answerverifiedjoint and ...View AnswerShow Answer

A limited partner has no right to

Correct AnswerverifiedShow Answer

If a partner decides to start a new business, this must be approved by

Correct AnswerverifiedShow Answer

A partnership can be formed only by the express agreement of the parties.

Correct AnswerverifiedShow Answer

A limited partnership is dissolved

Correct AnswerverifiedShow Answer

One of the advantages of the partnership form of organization is

Correct AnswerverifiedShow Answer

To avoid problems, the partnership agreement should contain provisions for settling disputes among the partners.

Correct AnswerverifiedShow Answer

Under certain circumstances, a joint venture may be treated as a corporation.

Correct AnswerverifiedShow Answer

Co-owners of a business are known as partners.

Correct AnswerverifiedShow Answer

Parker was the sole proprietor of a toy store. The business had assets of $20,000 and debts of $40,000. What rights do the creditors of the store have?

Correct AnswerverifiedThe creditors may sue for a ju...View AnswerShow Answer

A sole proprietor receives all the income from a business but also bears all losses.

Correct AnswerverifiedShow Answer

Most businesses in the United States are organized as sole proprietorships.

Correct AnswerverifiedShow Answer

The disadvantage of the sole proprietorship is

Correct AnswerverifiedShow Answer

One who is known to the public as a partner and who is active in the partnership is a

Correct AnswerverifiedShow Answer

If a sole proprietorship or partnership operates under a name that is different from its owner's, the name of the business must be registered and the owner identified.

Correct AnswerverifiedShow Answer

A partnership is considered to be a legal entity for the purpose of

Correct AnswerverifiedShow Answer

A limited partnership is a hybrid between a(n) ____________________ and a partnership.

Correct AnswerverifiedShow Answer

Mack, Newsome, and Parks were partners in a bookstore. Newsome suffered a severe heart attack. Is the partnership terminated?

Correct AnswerverifiedNo, unless the partnership agr...View AnswerShow Answer

A partnership may be terminated by

Correct AnswerverifiedShow Answer

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Yes. Archer and Lewis have the...
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joint and ...
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The creditors may sue for a ju...
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No, unless the partnership agr...
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Correct Answer
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