Question 1

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 2

Co-ownership of the means or instrumentality of accomplishing a single business transaction or a limited series of transactions ordinarily results in a:

Accepted Answer

A)   partnership.
B)   joint venture.
C)   corporation.
D)   R & D partnership.

Question 3

"Partnership property" is the sum of the partnership's assets, including all property acquired by a partnership.

Accepted Answer

A) True 
 B)False

Question 4

Whether an individual partner or the partnership owns certain property determines who gets it upon dissolution of the partnership and who shares in income from it.

Accepted Answer

A) True 
 B)False  True

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the correct definition for a partnership?

Accepted Answer

A)   An association of two or more persons with one or more general partners and one or more limited partners.
B)   A legal entity ordinarily consisting of an association of numerous individuals.
C)   An association of two or more persons to carry on as co-tenants in business.
D)   An association of two or more persons to carry on as co-owners a business for profit.

Question 8

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 9

Miller and Baker formed a partnership and purchased a cycle shop. The name of the new business cannot be "Miller Cycle Shop" because the name of the partnership must include the names of both partners if it includes the name of one partner.

Accepted Answer

A) True 
 B)False

Question 10

The UPA treats a partnership as a legal entity for all purposes.

Accepted Answer

A) True 
 B)False

Question 11

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

Accepted Answer

A)   limited liability limited partnership.
B)   limited partnership.
C)   limited liability company.
D)   business trust.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Burnside Corporation and the D. Stewart 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 14

Because the statute of frauds does not apply expressly to a contract for the formation of a partnership, usually no writing is required to create the relationship.

Accepted Answer

A) True 
 B)False  True

Question 15

Which of the following would be the most convincing evidence of a partnership?

Accepted Answer

A)   An agreement to share in the management of a business.
B)   Agreements to share gross returns.
C)   An agreement to share profits and losses.
D)   An agreement to pay a firm manager a percentage of the profits for his salary.

Question 16

A partner has all but which of the following duties?

Accepted Answer

A)   A duty of faithful service to the best of his ability.
B)   A duty to act in accordance with the partnership agreement.
C)   A duty not to engage in any other business while a partner.
D)   A duty not to acquire for himself a partnership opportunity without the consent of all the partners.

Question 17

Under the RUPA, a partner violates the duty of loyalty if the conduct furthers the partner's own interest.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Each partner, unless otherwise agreed, has equal rights in the management and conduct of the business of a general or a limited partnership.

Accepted Answer

A) True 
 B)False

Question 20

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Accepted Answer

A) True 
 B)False

Exam 30: Formation and Internal Relations of General Partnerships

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

Co-ownership of the means or instrumentality of accomplishing a single business transaction or a limited series of transactions ordinarily results in a:

Correct AnswerverifiedShow Answer

"Partnership property" is the sum of the partnership's assets, including all property acquired by a partnership.

Correct AnswerverifiedShow Answer

Whether an individual partner or the partnership owns certain property determines who gets it upon dissolution of the partnership and who shares in income from it.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is the correct definition for a partnership?

Correct AnswerverifiedShow Answer

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Correct AnswerverifiedShow Answer

Miller and Baker formed a partnership and purchased a cycle shop. The name of the new business cannot be "Miller Cycle Shop" because the name of the partnership must include the names of both partners if it includes the name of one partner.

Correct AnswerverifiedShow Answer

The UPA treats a partnership as a legal entity for all purposes.

Correct AnswerverifiedShow Answer

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Because the statute of frauds does not apply expressly to a contract for the formation of a partnership, usually no writing is required to create the relationship.

Correct AnswerverifiedTrue

Which of the following would be the most convincing evidence of a partnership?

Correct AnswerverifiedShow Answer

A partner has all but which of the following duties?

Correct AnswerverifiedShow Answer

Under the RUPA, a partner violates the duty of loyalty if the conduct furthers the partner's own interest.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Each partner, unless otherwise agreed, has equal rights in the management and conduct of the business of a general or a limited partnership.

Correct AnswerverifiedShow Answer

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Correct AnswerverifiedShow Answer

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified