Exam 30: Formation and Internal Relations of General Partnerships

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Identify which forms of business organization provide the owners with limited liability for the business's obligations and which forms of organization allow the owners to participate in the management and control of the business.

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Question 1

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Limited liability exists for the limited partners in a limited partnership, members of limited liability companies, partners in a limited liability partnership or a limited liability limited partnership, and shareholders of corporations.In a sole proprietorship, the owner completely controls the business.Partners in a general partnership or joint venturers have equal right to control the business.General partners in a limited partnership have an equal right to control the partnership, but limited partners have no right to participate in control.All members of an LLC may participate in management and control.Shareholders in corporations do not have direct control, but elect a board
of directors to manage the business.The trustees in a business trust have the exclusive right to manage and control the business free from control of the beneficiaries.

What is considered "partnership property" is determined primarily by the partners' intentions.

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(True/False)

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Question 2

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True

The Oak Grove Partnership decided it would buy personal computers for use by each partner.Cromwell, a partner, had an ownership interest in a computer store.He thought he could get the computers for the partnership at the best price because of his inside position, and he told his partners at Oak Grove about his position.He did obtain eight computers for $150 over manufacturer's price, which was $250 less per computer than the next lowest bid.What consequence?

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Question 3

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In a business trust, the trustees are generally not personally liable for the debts of the business.

(True/False)

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Question 4

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

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Question 5

Juan, a partner in the Bell Partnership, in violation of a specific term in the partnership agreement restricting the extension of credit of more than $5,000 without the written consent of all the partners, extends credit of $6,500 to Brittany.Juan has violated the duty of:

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Question 6

A partnership name may be the name of the partners or any one of them.

(True/False)

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Question 7

A general partnership may be formed for a charitable purpose.

(True/False)

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Question 8

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

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Question 9

Sharing of gross returns establishes a partnership.

(True/False)

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Question 10

Arthur, Betty, and Clara each inherit an undivided one-third of an apartment complex.Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money.What are they?

(Multiple Choice)

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Question 11

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

(Multiple Choice)

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Question 12

The choice of the most appropriate form of business enterprise cannot be determined in a general way, but depends on the particular circumstances of the owners.

(True/False)

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Question 13

The proportion in which partners bear losses depends upon their relative capital contributions.

(True/False)

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Question 14

The principal legal duties imposed upon partners in their relations with one another include:

(Multiple Choice)

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Question 15

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

(True/False)

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Question 16

In deciding whether property owned by a partner before formation of the partnership and used in the business is a capital contribution that belongs to the firm, a court will consider which of the following?

(Multiple Choice)

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Question 17

A joint venture is necessarily of short duration.

(True/False)

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Question 18

Which of the following is not true regarding a partnership name?

(Multiple Choice)

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Question 19

Identify six factors affecting the choice of the most appropriate form of business enterprise.Name the nine forms of business associations discussed in the chapter.

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Question 20

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Exam 30: Formation and Internal Relations of General Partnerships

Identify which forms of business organization provide the owners with limited liability for the business's obligations and which forms of organization allow the owners to participate in the management and control of the business.

What is considered "partnership property" is determined primarily by the partners' intentions.

In a business trust, the trustees are generally not personally liable for the debts of the business.

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

Juan, a partner in the Bell Partnership, in violation of a specific term in the partnership agreement restricting the extension of credit of more than $5,000 without the written consent of all the partners, extends credit of $6,500 to Brittany.Juan has violated the duty of:

A partnership name may be the name of the partners or any one of them.

A general partnership may be formed for a charitable purpose.

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

Sharing of gross returns establishes a partnership.

Arthur, Betty, and Clara each inherit an undivided one-third of an apartment complex.Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money.What are they?

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

The choice of the most appropriate form of business enterprise cannot be determined in a general way, but depends on the particular circumstances of the owners.

The proportion in which partners bear losses depends upon their relative capital contributions.

The principal legal duties imposed upon partners in their relations with one another include:

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

In deciding whether property owned by a partner before formation of the partnership and used in the business is a capital contribution that belongs to the firm, a court will consider which of the following?

A joint venture is necessarily of short duration.

Which of the following is not true regarding a partnership name?

Identify six factors affecting the choice of the most appropriate form of business enterprise.Name the nine forms of business associations discussed in the chapter.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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