Question 1

Anita is hired to manage an unincorporated dress boutique owned by Betty.The two agree that Anita will receive one-third of the net profits,which amount is to be paid to her on a monthly basis.Is Anita a partner? If the boutique has a loss instead of a profit,would Anita have to share the loss?

Accepted Answer

Anita is not a partner since she does no...

Question 2

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

Accepted Answer

A)  Luke would be entitled to payment from the partnership for the extra 20-25 hours per week he spends on partnership business unless a partnership agreement denies this right.
B)  the partners cannot agree to deny extra payment for extra work by a partner.
C)  unless the partners have otherwise agreed, Luke is not entitled to payment for his work for the partnership, even if it is disproportionate to his partner's work.
D)  Luke would be entitled to payment from the partnership only if the amount of time and effort he expends on partnership business is grossly disproportionate to that spent by his partner.

Question 3

General partnerships are used frequently in finance,insurance,accounting,real estate,law,and other services.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess,a business owner,is personally liable if:

Accepted Answer

A)  he is a sole proprietor of the business.
B)  the business is a corporation and he is a shareholder.
C)  he committed the tort.
D)  he is a general partner of the business.
E)  All of the above except (b) .

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

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 9

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 10

Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits,but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:

Accepted Answer

A)  a subpartner.
B)  a dormant partner.
C)  a limited partner.
D)  an aggregate partner.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A person who receives a share of profits of a business is presumed to be a partner.

Accepted Answer

A) True 
 B)False  True

Question 13

A charitable organization cannot be formed as a partnership.

Accepted Answer

A) True 
 B)False

Question 14

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 order to acquire and retain goodwill.The name selected by the partners may not be identical or deceptively similar to the name of any other existing business concern.It may contain either Bert's or Philip's name,or both.It might be a fictitious or assumed name.An assumed name statute provides that a certificate must be filed with the state showing the name under which the business is conducted and the real names and addresses of all persons conducting the business as partners or proprietors.Nearly all of the states have this statute so that interested parties,customers,creditors,etc.can find out the names of the business owners.A partnership name may not indicate to the public that the business is a corporation.

Question 15

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership,nor does it result in McClendon's being entitled to participate in the management of the partnership business.

Accepted Answer

A) True 
 B)False

Question 16

A partner can withdraw his partnership capital at any time.

Accepted Answer

A) True 
 B)False

Question 17

The type of business enterprise with the most entities is the sole proprietorship,followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

Accepted Answer

A) True 
 B)False

Question 18

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)  None of the above.

Question 19

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

Accepted Answer

The RUPA recognizes a partnership as an ...

Question 20

Assignment of a partner's interest will cause dissolution.

Accepted Answer

A) True 
 B)False  False

Exam 30: Formation and Internal Relations of General Partnerships

Anita is hired to manage an unincorporated dress boutique owned by Betty.The two agree that Anita will receive one-third of the net profits,which amount is to be paid to her on a monthly basis.Is Anita a partner? If the boutique has a loss instead of a profit,would Anita have to share the loss?

Correct Answer
verified
Anita is not a partner since she does no...
View Answer

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

Correct Answer
verified

General partnerships are used frequently in finance,insurance,accounting,real estate,law,and other services.

Correct Answer
verified

A partner has all but which of the following duties?

Correct Answer
verified

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

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess,a business owner,is personally liable if:

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits,but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:

Correct Answer
verified

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

Correct Answer
verified

A person who receives a share of profits of a business is presumed to be a partner.

Correct Answer
verified
True

A charitable organization cannot be formed as a partnership.

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.

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership,nor does it result in McClendon's being entitled to participate in the management of the partnership business.

Correct Answer
verified

A partner can withdraw his partnership capital at any time.

Correct Answer
verified

The type of business enterprise with the most entities is the sole proprietorship,followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

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

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

Correct Answer
verified
The RUPA recognizes a partnership as an ...
View Answer

Assignment of a partner's interest will cause dissolution.

Correct Answer
verified
False

Exam 30: Formation and Internal Relations of General Partnerships

Anita is hired to manage an unincorporated dress boutique owned by Betty.The two agree that Anita will receive one-third of the net profits,which amount is to be paid to her on a monthly basis.Is Anita a partner? If the boutique has a loss instead of a profit,would Anita have to share the loss?

Correct AnswerverifiedAnita is not a partner since she does no...View AnswerShow Answer

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

Correct AnswerverifiedShow Answer

General partnerships are used frequently in finance,insurance,accounting,real estate,law,and other services.

Correct AnswerverifiedShow Answer

A partner has all but which of the following duties?

Correct AnswerverifiedShow Answer

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

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess,a business owner,is personally liable if:

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Andre invested $100,000 in a partnership with Erik and Louis.Andre's contract with the partnership states he will receive a portion of partnership profits,but he will be liable for partnership's debts only to the extent of the $100,000 he invested.Andre is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A person who receives a share of profits of a business is presumed to be a partner.

Correct AnswerverifiedTrue

A charitable organization cannot be formed as a partnership.

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.

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership,nor does it result in McClendon's being entitled to participate in the management of the partnership business.

Correct AnswerverifiedShow Answer

A partner can withdraw his partnership capital at any time.

Correct AnswerverifiedShow Answer

The type of business enterprise with the most entities is the sole proprietorship,followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

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

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

Correct AnswerverifiedThe RUPA recognizes a partnership as an ...View AnswerShow Answer

Assignment of a partner's interest will cause dissolution.

Correct AnswerverifiedFalse

Correct Answer
verified
Anita is not a partner since she does no...
View 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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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The RUPA recognizes a partnership as an ...
View Answer

Correct Answer
verified
False