Question 1

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?

Accepted Answer

A)   Yes, since each has control of the operation.
B)   Yes, because they are all co-equals in ownership of the shelter.
C)   No, because they have made no formal agreement.
D)   No, because there is no business for profit.

Question 2

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.

Question 3

In the case of In Re KeyTronics , the court held that:

Accepted Answer

A)   the intent of the parties to form a partnership is controlling as to partnership formation under the RUPA.
B)   there is a requirement that the parties have a specific agreement in order to form a partnership.
C)   the intent of the parties to form a partnership will be ascertained objectively from all the evidence and circumstances.
D)   under Section 202(a)  of the RUPA, the intent necessary to form an association refers to the intent to form a partnership per se.

Question 4

Some states allow the formation of partnerships in which all partners have limited liability.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)   a legal aggregate.
B)   a delegation of assets.
C)   a charging order.
D)   an assignment.

Question 6

Afterburn Corporation and the Mangus Trust can be partners in a partnership if they carry on as co-owners a business for profit.

Accepted Answer

A) True 
 B)False

Question 7

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Accepted Answer

A)   joint tenant.
B)   tenant in common.
C)   tenant in partnership.
D)   tenant by the entireties.

Question 8

Each partner has an interest in the partnership, which includes his share of profits and losses, his right to receive distributions, and his management rights.

Accepted Answer

A) True 
 B)False  True

Question 9

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

Accepted Answer

A)   Liability of partners for partnership obligations.
B)   For the purpose of suing or being sued.
C)   For all purposes.
D)   Assignment of a partner's interest.

Question 10

Under the RUPA, a partner is a co-owner of partnership property.

Accepted Answer

A) True 
 B)False

Question 11

Kean and Bubnick are real estate agents who share commissions on joint sales. This sharing of gross returns establishes a partnership unless Kean and Bubnick have a written agreement to the contrary.

Accepted Answer

A) True 
 B)False

Question 12

Under the common law, a partnership was generally considered to be  an aggregate of individuals  rather than  a legal entity .

Accepted Answer

A) True 
 B)False

Question 13

Bert and Philip have decided to form a partnership to operate a lawn care service. Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Accepted Answer

A partnership should have a firm name in...

Question 14

Former partners, as well as current partners, have some rights to access partnership books and records.

Accepted Answer

A) True 
 B)False

Question 15

A partner's transferable interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n)  __________ against the partner's transferable interest.

Accepted Answer

A)   foreclosure
B)   redemption
C)   charging order
D)   payment restraint.

Question 16

Assignment of a partner's interest will cause dissolution.

Accepted Answer

A) True 
 B)False

Question 17

In the case of Thomas v. Lloyd , the court held:

Accepted Answer

A)   the use of land by a partnership is determinative of the fact that the land is owned by the partnership.
B)   whether real estate titled in the names of individual partners is partnership property is a question of fact, and the burden of proof is on the one alleging that the actual ownership does not match the names on the legal title.
C)   payment of real estate taxes out of partnership funds is determinative of the fact that the land is a partnership asset.
D)   payment of promissory note payments for the real estate out of partnership funds is determinative of the fact that the realty is a partnership asset. B

Question 18

What are the ways the RUPA recognizes a partnership as an entity?

Accepted Answer

The RUPA recognizes a partnership as an entity legally distinct from its members in several ways. They include: 
a. The assets of the firm are treated as those of the business and are considered to be distinct from the individual assets of the members: 
b. A partner is accountable as a fiduciary to the partnership; 
c. Every partner is considered an agent of the partnership; and 
d. A partnership may sue and be sued in the name of the partnership.

Question 19

The law establishes a test for determining whether a partnership has been formed. The test includes which of the following?

Accepted Answer

A)   An association of two or more persons.
B)   Conducting a business not necessarily for profit.
C)   That the partnership agreement is filed with the Secretary of State.
D)   The sharing of gross returns.

Question 20

Compare "partnership property" with a "partner's interest." Consider such factors as the definition, the possession, the assignability, how attachment occurs, and the inheritability of each.

Accepted Answer

Partnership property is the sum of all t...

Exam 30: Formation and Internal Relations of General Partnerships

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?

Correct Answer
verified

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

Correct Answer
verified

In the case of In Re KeyTronics , the court held that:

Correct Answer
verified

Some states allow the formation of partnerships in which all partners have limited liability.

Correct Answer
verified

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

Correct Answer
verified

Afterburn Corporation and the Mangus Trust can be partners in a partnership if they carry on as co-owners a business for profit.

Correct Answer
verified

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Correct Answer
verified

Each partner has an interest in the partnership, which includes his share of profits and losses, his right to receive distributions, and his management rights.

Correct Answer
verified
True

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

Correct Answer
verified

Under the RUPA, a partner is a co-owner of partnership property.

Correct Answer
verified

Kean and Bubnick are real estate agents who share commissions on joint sales. This sharing of gross returns establishes a partnership unless Kean and Bubnick have a written agreement to the contrary.

Correct Answer
verified

Under the common law, a partnership was generally considered to be an aggregate of individuals rather than a legal entity .

Correct Answer
verified

Bert and Philip have decided to form a partnership to operate a lawn care service. Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Correct Answer
verified
A partnership should have a firm name in...
View Answer

Former partners, as well as current partners, have some rights to access partnership books and records.

Correct Answer
verified

A partner's transferable interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest.

Correct Answer
verified

Assignment of a partner's interest will cause dissolution.

Correct Answer
verified

In the case of Thomas v. Lloyd , the court held:

Correct Answer
verified
B

What are the ways the RUPA recognizes a partnership as an entity?

The law establishes a test for determining whether a partnership has been formed. The test includes which of the following?

Correct Answer
verified

Compare "partnership property" with a "partner's interest." Consider such factors as the definition, the possession, the assignability, how attachment occurs, and the inheritability of each.

Correct Answer
verified
Partnership property is the sum of all t...
View Answer

Exam 30: Formation and Internal Relations of General Partnerships

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the case of In Re KeyTronics , the court held that:

Correct AnswerverifiedShow Answer

Some states allow the formation of partnerships in which all partners have limited liability.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Afterburn Corporation and the Mangus Trust can be partners in a partnership if they carry on as co-owners a business for profit.

Correct AnswerverifiedShow Answer

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Correct AnswerverifiedShow Answer

Each partner has an interest in the partnership, which includes his share of profits and losses, his right to receive distributions, and his management rights.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Under the RUPA, a partner is a co-owner of partnership property.

Correct AnswerverifiedShow Answer

Kean and Bubnick are real estate agents who share commissions on joint sales. This sharing of gross returns establishes a partnership unless Kean and Bubnick have a written agreement to the contrary.

Correct AnswerverifiedShow Answer

Under the common law, a partnership was generally considered to be an aggregate of individuals rather than a legal entity .

Correct AnswerverifiedShow Answer

Bert and Philip have decided to form a partnership to operate a lawn care service. Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Correct AnswerverifiedA partnership should have a firm name in...View AnswerShow Answer

Former partners, as well as current partners, have some rights to access partnership books and records.

Correct AnswerverifiedShow Answer

A partner's transferable interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest.

Correct AnswerverifiedShow Answer

Assignment of a partner's interest will cause dissolution.

Correct AnswerverifiedShow Answer

In the case of Thomas v. Lloyd , the court held:

Correct AnswerverifiedB

What are the ways the RUPA recognizes a partnership as an entity?

The law establishes a test for determining whether a partnership has been formed. The test includes which of the following?

Correct AnswerverifiedShow Answer

Compare "partnership property" with a "partner's interest." Consider such factors as the definition, the possession, the assignability, how attachment occurs, and the inheritability of each.

Correct AnswerverifiedPartnership property is the sum of all t...View AnswerShow Answer

Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A partnership should have a firm name in...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
Partnership property is the sum of all t...
View Answer