Question 1

Which of the following controls whether the partnership or an individual owns the property?

Accepted Answer

A) Intent of the partners 
B) Invoices 
C) Whether the property is commonly used for the type of business 
D) The function of the property 
A) Intent of the partners 
B) Invoices 
C) Whether the property is commonly used for the type of business 
D) The function of the property

Question 2

Which of the following is not a necessary element of the definition of partnership according to the RUPA?

Accepted Answer

A) Co-ownership of the business 
B) Association of two or more persons 
C) Limited liability of partners 
D) Carrying on of a business 
A) Co-ownership of the business 
B) Association of two or more persons 
C) Limited liability of partners 
D) Carrying on of a business

Question 3

A ________ is a partnership whose partners have elected limited liability status.

Accepted Answer

A) limited liability company 
B) professional corporation 
C) professional partnership 
D) limited liability partnership 
A) limited liability company 
B) professional corporation 
C) professional partnership 
D) limited liability partnership

Question 4

According to the RUPA's rules that determine when property is acquired by a partnership,which of the following statements is false?

Accepted Answer

A) Property belongs to the partnership if the property is transferred to the partnership in its name. 
B) Property belongs to the partnership if the property is transferred to any partner acting as a partner by a transfer document that names the partnership. 
C) Property belongs to the partnership if the property is purchased with a partner's funds. 
D) Property belongs to the partnership if the property is transferred to any partner by a transfer document indicating the partner's status as a partner or that a partnership exists. 
A) Property belongs to the partnership if the property is transferred to the partnership in its name. 
B) Property belongs to the partnership if the property is transferred to any partner acting as a partner by a transfer document that names the partnership. 
C) Property belongs to the partnership if the property is purchased with a partner's funds. 
D) Property belongs to the partnership if the property is transferred to any partner by a transfer document indicating the partner's status as a partner or that a partnership exists.

Question 5

Which legal form of business has the ability to attract the greatest amount of capital from investors?

Accepted Answer

A) A limited liability company 
B) A partnership 
C) A corporation 
D) A sole proprietorship 
A) A limited liability company 
B) A partnership 
C) A corporation 
D) A sole proprietorship

Question 6

In many public meetings,John has proclaimed himself to be an equal partner of Chan's partnership business.Chan's business ran into financial difficulties.John and Chan approached a creditor to obtain a loan.The creditor gave the loan based on a false presumption that John was a partner in the business too.Can John be made liable for the loan?

Accepted Answer

A) Yes,because John is a close acquaintance of Chan;thus,it is his ethical duty to help Chan during her financial trouble. 
B) Yes,because John is a purported partner;public representations of his partner status make him personally liable for the debt. 
C) No,because he is not legally a partner;the creditor should have checked the partnership agreement before advancing the loan. 
D) No,because John did not participate in the business;he was thus not a member of the partnership business. 
A) Yes,because John is a close acquaintance of Chan;thus,it is his ethical duty to help Chan during her financial trouble. 
B) Yes,because John is a purported partner;public representations of his partner status make him personally liable for the debt. 
C) No,because he is not legally a partner;the creditor should have checked the partnership agreement before advancing the loan. 
D) No,because John did not participate in the business;he was thus not a member of the partnership business.

Question 7

Sue transferred her transferable interest of the partnership business to her creditor to discharge her debt.However,Sue is an efficient manager and she still manages the business,even after the transfer.Is she still a partner?

Accepted Answer

Yes.By itself a partner's transfer of hi

Question 8

The ________ business form is recognized not only in the United States,but also in Australia,Canada,Cyprus,England,India,Israel,Russia,South Africa,Turkey,Zimbabwe,and many other nations.

Accepted Answer

A) limited liability company 
B) partnership 
C) S corporation 
D) professional corporation 
A) limited liability company 
B) partnership 
C) S corporation 
D) professional corporation

Question 9

The decision on what form of business to make a startup business is important because it will affect the business owner's liability and control of the business.

Accepted Answer

A) True 
 B)False

Question 10

A sole proprietorship lasts for how long if it continues to run unabated?

Accepted Answer

A) For 100 years 
B) 10 years with an option to renew for another 10 years 
C) Until the death of the owner 
D) 30 years then the business has to be reformed 
A) For 100 years 
B) 10 years with an option to renew for another 10 years 
C) Until the death of the owner 
D) 30 years then the business has to be reformed

Exam 37: Introduction to Forms of Business and Formation of Partnerships

Which of the following controls whether the partnership or an individual owns the property?

Which of the following is not a necessary element of the definition of partnership according to the RUPA?

A ________ is a partnership whose partners have elected limited liability status.

According to the RUPA's rules that determine when property is acquired by a partnership,which of the following statements is false?

Which legal form of business has the ability to attract the greatest amount of capital from investors?

Sue transferred her transferable interest of the partnership business to her creditor to discharge her debt.However,Sue is an efficient manager and she still manages the business,even after the transfer.Is she still a partner?

The ________ business form is recognized not only in the United States,but also in Australia,Canada,Cyprus,England,India,Israel,Russia,South Africa,Turkey,Zimbabwe,and many other nations.

The decision on what form of business to make a startup business is important because it will affect the business owner's liability and control of the business.

A sole proprietorship lasts for how long if it continues to run unabated?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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