Question 1

A __________ is an unincorporated business association consisting of at least one general partner and at least one limited partner.

Accepted Answer

A)  joint venture
B)  limited liability company
C)  limited liability partnership
D)  limited partnershipE) A) and B)
F) A) and C)

Question 2

Any natural person having full capacity may enter a partnership.

Accepted Answer

A) True 
 B)False

Question 3

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Accepted Answer

The basic features of a partnership agre...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.E) All of the above
F) C) and D)

Question 6

A sole proprietorship dissolves upon the death of the owner.

Accepted Answer

A) True 
 B)False

Question 7

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 8

Marilyn,George,and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses.Are they partners?

Accepted Answer

A)  Yes, since they are associating to carry on a for-profit business which they co-own.
B)  No, because they each control the use of the land.
C)  Yes, because if there is a loss in the land's value, they will all share that loss.
D)  No, they are merely joint venturers.E) All of the above
F) A) and D)

Question 9

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.E) C) and D)
F) All of the above

Question 10

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.E) A) and B)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

States have authorized the formation of limited liability companies.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Alice and Brad enter into a partnership,which becomes insolvent,as does Brad.Alice is fully liable for the debts of the partnership.

Accepted Answer

A) True 
 B)False

Question 15

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...

Question 16

Which of the following would lack the capacity to become a partner?

Accepted Answer

A)  A trust.
B)  An adjudicated incompetent.
C)  A corporation.
D)  All of the above.E) A) and B)
F) B) and D)

Question 17

Michelle and Margaret agree to form a partnership.The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

Accepted Answer

A) True 
 B)False

Question 20

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.E) A) and B)
F) All of the above

Exam 30: Formation and Internal Relations of General Partnerships

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

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

Correct AnswerverifiedShow Answer

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

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

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

Correct AnswerverifiedShow Answer

Alice and Brad enter into a partnership,which becomes insolvent,as does Brad.Alice is fully liable for the debts of the partnership.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following would lack the capacity to become a partner?

Correct AnswerverifiedShow Answer

A sole proprietorship dissolves upon the death of the owner.

Correct AnswerverifiedShow Answer

Michelle and Margaret agree to form a partnership.The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law,so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Correct AnswerverifiedThe basic features of a partnership agre...View AnswerShow Answer

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

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

States have authorized the formation of limited liability companies.

Correct AnswerverifiedShow Answer

Corporations today outnumber unincorporated business associations plus sole proprietorships.

Correct AnswerverifiedShow Answer

Any natural person having full capacity may enter a partnership.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A __________ is an unincorporated business association consisting of at least one general partner and at least one limited partner.

Correct AnswerverifiedShow Answer

Marilyn,George,and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses.Are they partners?

Correct AnswerverifiedShow Answer

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The basic features of a partnership agre...
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Partnership property is the sum of all t...
View Answer

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