Question 1

Bankruptcy of a partnership does not terminate it.

Accepted Answer

A) True 
 B)False  False

Question 2

A withdrawing partner has liability for any loss sustained by the other partners because of the withdrawal.

Accepted Answer

A) True 
 B)False  True

Question 3

One partner can compel the other members to assume continued losses after the success of the business becomes highly improbable.

Accepted Answer

A) True 
 B)False  False

Question 4

Under the Revised Uniform Partnership Act, a court may issue a decree of dissolution when a partner's conduct makes it impractical to carry on business in conformity with the partnership agreement.

Accepted Answer

A) True 
 B)False

Question 5

When a partnership is dissolved, its assets are first paid to:

Accepted Answer

A) Partners as a return of their capital contribution. 
B) Creditors to pay partnership debts. 
C) Partners who have advanced money to the firm. 
D) Representatives of deceased partners. 
A) Partners as a return of their capital contribution. 
B) Creditors to pay partnership debts. 
C) Partners who have advanced money to the firm. 
D) Representatives of deceased partners.

Question 6

Which of the following best describes the dissolution of a partnership?

Accepted Answer

A) It is paying all the outstanding obligations of the partnership. 
B) It is the re-distribution of capital among the partners. 
C) It is the change in the relation of the partners by ending the present legal entity. 
D) It is a change in the relation of the partners by adding one. 
A) It is paying all the outstanding obligations of the partnership. 
B) It is the re-distribution of capital among the partners. 
C) It is the change in the relation of the partners by ending the present legal entity. 
D) It is a change in the relation of the partners by adding one.

Question 7

Brothers Inc., a partnership, consisted of three partners Jessie, Mark, and Jake. However, Jessie was declared bankrupt at a time the company suffered considerable losses. Which of the following is likely to be true?

Accepted Answer

A) Jessie's unlimited liability is destroyed 
B) Jessie can continue to be a partner in the firm. 
C) Jake and Mark can enforce liability for partnership debts on Jessie 
D) Jessie's trustee must be admitted as a full partner 
A) Jessie's unlimited liability is destroyed 
B) Jessie can continue to be a partner in the firm. 
C) Jake and Mark can enforce liability for partnership debts on Jessie 
D) Jessie's trustee must be admitted as a full partner

Question 8

A partner may obtain a decree of dissolution when a court declares another partner insane or of unsound mind.

Accepted Answer

A) True 
 B)False

Question 9

Notice of dissolution of a partnership is not necessary to third persons who have done business with the firm.

Accepted Answer

A) True 
 B)False

Question 10

A partner may be expelled who has engaged in conduct against the principles of good faith and loyalty.

Accepted Answer

A) True 
 B)False

Question 11

A withdrawing partner is entitled to:

Accepted Answer

A) Receive exemption from liability for company losses. 
B) Receive undistributed profits. 
C) Be exempt from personal taxes. 
D) Be exempt from outstanding debts. 
A) Receive exemption from liability for company losses. 
B) Receive undistributed profits. 
C) Be exempt from personal taxes. 
D) Be exempt from outstanding debts.

Question 12

After dissolution, a third person making a contract with the partnership stands in a similar position as a person dealing with an agent whose authority has been revoked.

Accepted Answer

A) True 
 B)False

Question 13

What can happen if one partner develops an incapacity that makes it impossible for that partner to perform the services contemplated by the partnership agreement?

Accepted Answer

A) A court will order dissolution even if the incapacity is temporary. 
B) The other partners can expel the incapacitated partner from the partnership. 
C) The other partners can dissolve the partnership. 
D) A court must judge whether the partnership should be dissolved. 
A) A court will order dissolution even if the incapacity is temporary. 
B) The other partners can expel the incapacitated partner from the partnership. 
C) The other partners can dissolve the partnership. 
D) A court must judge whether the partnership should be dissolved.

Question 14

A court will not dissolve a partnership for misconduct if one partner:

Accepted Answer

A) Files a petition for personal bankruptcy. 
B) Abandons the business. 
C) Persistently violates the partnership agreement. 
D) Engages in dishonesty. 
A) Files a petition for personal bankruptcy. 
B) Abandons the business. 
C) Persistently violates the partnership agreement. 
D) Engages in dishonesty.

Question 15

Which of the following is true regarding notice of a partnership's dissolution?

Accepted Answer

A) The law requires notice of dissolution to be given through a newspaper. 
B) Notice of dissolution is not necessary when a dormant or a secret partner retires. 
C) Notice of dissolution is necessary when the partnership is dissolved by a judicial decree. 
D) Notice of dissolution is necessary when a partnership is dissolved by the operation of law. 
A) The law requires notice of dissolution to be given through a newspaper. 
B) Notice of dissolution is not necessary when a dormant or a secret partner retires. 
C) Notice of dissolution is necessary when the partnership is dissolved by a judicial decree. 
D) Notice of dissolution is necessary when a partnership is dissolved by the operation of law.

Question 16

Explain the dissolution of a partnership on the basis of futility. ​

Accepted Answer

If a business partnership clearly cannot

Question 17

The death of a partner automatically dissolves the partnership unless the partnership agreement provides otherwise.

Accepted Answer

A) True 
 B)False

Question 18

When a date for dissolution is set in the partnership agreement, the partnership cannot be dissolved before that date. ​

Accepted Answer

A) True 
 B)False

Question 19

When one partner dies, the other partners must:

Accepted Answer

A) Distribute the deceased partner's capital among themselves. 
B) Declare the partnership futile. 
C) Admit the deceased's representative as a partner. 
D) Dissolve the partnership unless the partnership agreement states otherwise . 
A) Distribute the deceased partner's capital among themselves. 
B) Declare the partnership futile. 
C) Admit the deceased's representative as a partner. 
D) Dissolve the partnership unless the partnership agreement states otherwise .

Question 20

Dissolution of a partnership relieves the partners of their duties to each other.

Accepted Answer

A) True 
 B)False

Exam 31: Dissolution of a Partnership

Bankruptcy of a partnership does not terminate it.

A withdrawing partner has liability for any loss sustained by the other partners because of the withdrawal.

One partner can compel the other members to assume continued losses after the success of the business becomes highly improbable.

Under the Revised Uniform Partnership Act, a court may issue a decree of dissolution when a partner's conduct makes it impractical to carry on business in conformity with the partnership agreement.

When a partnership is dissolved, its assets are first paid to:

Which of the following best describes the dissolution of a partnership?

Brothers Inc., a partnership, consisted of three partners Jessie, Mark, and Jake. However, Jessie was declared bankrupt at a time the company suffered considerable losses. Which of the following is likely to be true?

A partner may obtain a decree of dissolution when a court declares another partner insane or of unsound mind.

Notice of dissolution of a partnership is not necessary to third persons who have done business with the firm.

A partner may be expelled who has engaged in conduct against the principles of good faith and loyalty.

A withdrawing partner is entitled to:

After dissolution, a third person making a contract with the partnership stands in a similar position as a person dealing with an agent whose authority has been revoked.

What can happen if one partner develops an incapacity that makes it impossible for that partner to perform the services contemplated by the partnership agreement?

A court will not dissolve a partnership for misconduct if one partner:

Which of the following is true regarding notice of a partnership's dissolution?

Explain the dissolution of a partnership on the basis of futility. ​

The death of a partner automatically dissolves the partnership unless the partnership agreement provides otherwise.

When a date for dissolution is set in the partnership agreement, the partnership cannot be dissolved before that date. ​

When one partner dies, the other partners must:

Dissolution of a partnership relieves the partners of their duties to each other.

Introduction to Law

Courts and Court Procedures

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills Inheritances and Trust

Filters

Explain the dissolution of a partnership on the basis of futility.

When a date for dissolution is set in the partnership agreement, the partnership cannot be dissolved before that date.