Question 1

Discuss the rules of dissociation and dissolution for mining partnerships.

Accepted Answer

The partnership rules of dissociation an

Question 2

Which of the following is true about partnership rules for mining partnerships?

Accepted Answer

A)  Mining partnerships are easiest to dissolve. 
B)  The transferability of mining partnership interest is restricted. 
C)  A mining partner may sell his interest to another person. 
D)  The death of a mining partner affects a dissolution. 
A)  Mining partnerships are easiest to dissolve. 
B)  The transferability of mining partnership interest is restricted. 
C)  A mining partner may sell his interest to another person. 
D)  The death of a mining partner affects a dissolution.

Question 3

Which of the following is an implied authority of a partner winding up the business of an accounting partnership?

Accepted Answer

A)  Entering into new contracts made after the dissolution 
B)  Disposing of the partnership's excess supplies 
C)  Making a contract to audit the financial records of a new client 
D)  Borrowing money in the name of the partnership 
A)  Entering into new contracts made after the dissolution 
B)  Disposing of the partnership's excess supplies 
C)  Making a contract to audit the financial records of a new client 
D)  Borrowing money in the name of the partnership

Question 4

Normally,the implied authority of a winding up partner includes no power to borrow money in the name of the partnership.

Accepted Answer

A) True 
 B)False

Question 5

In an LLP that is continuing business after dissociation:

Accepted Answer

A)  a dissociated partner has high risk of continuing liability for contracts. 
B)  a dissociated partner has less risk of torts occurring before or after the partner leaves the LLP. 
C)  the partner's liability is limited beyond the LLP's assets. 
D)  the buyout payment made to a dissociated LLP partner will impair the ability of the LLP to pay its creditors. 
A)  a dissociated partner has high risk of continuing liability for contracts. 
B)  a dissociated partner has less risk of torts occurring before or after the partner leaves the LLP. 
C)  the partner's liability is limited beyond the LLP's assets. 
D)  the buyout payment made to a dissociated LLP partner will impair the ability of the LLP to pay its creditors.

Question 6

Mr.Green enters into a partnership with IT Doctors LLP.Mr.Green's capital investment into the business is $10,000.Shortly after joining the new business a client sues the IT Doctors LLP and wins a judgment of $750,000.How much is Mr.Green liable for?

Accepted Answer

A)  $10,000 
B)  $100,000 
C)  $750,000 
D)  $0 
A)  $10,000 
B)  $100,000 
C)  $750,000 
D)  $0

Question 7

Which of the following causes dissolution and winding up?

Accepted Answer

A)  A partner's transfer of his transferable partnership interest 
B)  When the partnership has completed the undertaking for which it was created 
C)  A creditor's obtaining a charging order 
D)  The addition of a new partner to the partnership 
A)  A partner's transfer of his transferable partnership interest 
B)  When the partnership has completed the undertaking for which it was created 
C)  A creditor's obtaining a charging order 
D)  The addition of a new partner to the partnership

Question 8

Andrew,being a partner,has appointed a caretaker for his property.Therefore,he has committed a wrongful dissociation.

Accepted Answer

A) True 
 B)False

Question 9

The RUPA makes a dissociated partner liable as a partner to a party that entered into a transaction with the continuing partnership,unless:

Accepted Answer

A)  the other party believed the dissociated partner was still a partner. 
B)  the transaction was entered into more than two years after the partner has dissociated. 
C)  the transaction was entered into 90 days before the filing of a Statement of Dissociation with the secretary of state. 
D)  the other party was not made aware of the partner's dissociation. 
A)  the other party believed the dissociated partner was still a partner. 
B)  the transaction was entered into more than two years after the partner has dissociated. 
C)  the transaction was entered into 90 days before the filing of a Statement of Dissociation with the secretary of state. 
D)  the other party was not made aware of the partner's dissociation.

Question 10

A partner charged with winding up of the partnership has implied authority to take such appropriate actions necessary to accomplish the wind up.

Accepted Answer

A) True 
 B)False

Question 11

Dissociation is the term for adding new members to an existing partnership.

Accepted Answer

A) True 
 B)False

Question 12

Under RUPA,a new partner just joining a partnership has no liability for past debts of the business.

Accepted Answer

A) True 
 B)False

Question 13

Poxabogue Associates,a partnership,is dissociated by the retirement of a partner.The business is continued by the remaining partners and a new partner,Enrica.What is Enrica's liability to creditors for partnership obligations that arose before she became a partner?

Accepted Answer

A)  Enrica is liable to the extent of partnership assets. 
B)  Enrica is liable only if she agrees to assume the retired partner's liability. 
C)  Enrica is fully liable. 
D)  Enrica has no liability. 
A)  Enrica is liable to the extent of partnership assets. 
B)  Enrica is liable only if she agrees to assume the retired partner's liability. 
C)  Enrica is fully liable. 
D)  Enrica has no liability.

Question 14

Which of the following is a consequence of wrongful dissociation?

Accepted Answer

A)  The dissociated partner may demand dissolution of the partnership. 
B)  The partnership must terminate on grounds of wrongful dissociation. 
C)  The dissociated partner should contribute to performing the winding up. 
D)  The dissociated partner is not entitled to receive the buyout price until the term of the partnership has expired. 
A)  The dissociated partner may demand dissolution of the partnership. 
B)  The partnership must terminate on grounds of wrongful dissociation. 
C)  The dissociated partner should contribute to performing the winding up. 
D)  The dissociated partner is not entitled to receive the buyout price until the term of the partnership has expired.

Question 15

A heated disagreement is grounds for dissociation of a partner with the business.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true about the effect of LLP statutes after appointment of a new partner?

Accepted Answer

A)  RUPA provides that the new partner has full liability for the LLP's obligations. 
B)  The former partners will be personally responsible on committing a malpractice. 
C)  For obligations incurred before his admission,the new partner may not be held liable. 
D)  LLP partnership agreements often change the RUPA rule about a new partner's liability. 
A)  RUPA provides that the new partner has full liability for the LLP's obligations. 
B)  The former partners will be personally responsible on committing a malpractice. 
C)  For obligations incurred before his admission,the new partner may not be held liable. 
D)  LLP partnership agreements often change the RUPA rule about a new partner's liability.

Question 17

Which of the following causes a dissociation of a partnership?

Accepted Answer

A)  Withdrawal of a partner from a partnership at will 
B)  Three partners disagreeing on a matter in the ordinary course of business 
C)  A partner being provided his partnership interest 
D)  Addition of a partner to the partnership 
A)  Withdrawal of a partner from a partnership at will 
B)  Three partners disagreeing on a matter in the ordinary course of business 
C)  A partner being provided his partnership interest 
D)  Addition of a partner to the partnership

Question 18

Which of the following causes dissociation?

Accepted Answer

A)  A partner's transfer of his transferable partnership interest 
B)  A creditor's obtaining a charging order 
C)  A partner's wrongful conduct materially affecting the partnership business 
D)  The addition of a new partner to a partnership 
A)  A partner's transfer of his transferable partnership interest 
B)  A creditor's obtaining a charging order 
C)  A partner's wrongful conduct materially affecting the partnership business 
D)  The addition of a new partner to a partnership

Question 19

When proceeds from the sale of partnership assets are being distributed during winding up,which of the following is settled first?

Accepted Answer

A)  Payment to partners to the extent of their capital contributions 
B)  Payment to creditors of the partnership 
C)  Payment to partners to the extent of their share of profits 
D)  Payment to creditors after charging the partners' shares of losses 
A)  Payment to partners to the extent of their capital contributions 
B)  Payment to creditors of the partnership 
C)  Payment to partners to the extent of their share of profits 
D)  Payment to creditors after charging the partners' shares of losses

Question 20

Which of the following is true about the effect of partnership agreement?

Accepted Answer

A)  The dissociations listed in the RUPA are merely default rules. 
B)  The partners cannot change the definition of wrongful dissociations. 
C)  Partners cannot require dissociation if a partner transfers his transferable partnership interest. 
D)  The effects of nonwrongful dissociation cannot be changed. 
A)  The dissociations listed in the RUPA are merely default rules. 
B)  The partners cannot change the definition of wrongful dissociations. 
C)  Partners cannot require dissociation if a partner transfers his transferable partnership interest. 
D)  The effects of nonwrongful dissociation cannot be changed.

Exam 39: Partners Dissociation and Partnerships Dissolution and Winding up

Discuss the rules of dissociation and dissolution for mining partnerships.

Which of the following is true about partnership rules for mining partnerships?

Which of the following is an implied authority of a partner winding up the business of an accounting partnership?

Normally,the implied authority of a winding up partner includes no power to borrow money in the name of the partnership.

In an LLP that is continuing business after dissociation:

Mr.Green enters into a partnership with IT Doctors LLP.Mr.Green's capital investment into the business is $10,000.Shortly after joining the new business a client sues the IT Doctors LLP and wins a judgment of $750,000.How much is Mr.Green liable for?

Which of the following causes dissolution and winding up?

Andrew,being a partner,has appointed a caretaker for his property.Therefore,he has committed a wrongful dissociation.

The RUPA makes a dissociated partner liable as a partner to a party that entered into a transaction with the continuing partnership,unless:

A partner charged with winding up of the partnership has implied authority to take such appropriate actions necessary to accomplish the wind up.

Dissociation is the term for adding new members to an existing partnership.

Under RUPA,a new partner just joining a partnership has no liability for past debts of the business.

Poxabogue Associates,a partnership,is dissociated by the retirement of a partner.The business is continued by the remaining partners and a new partner,Enrica.What is Enrica's liability to creditors for partnership obligations that arose before she became a partner?

Which of the following is a consequence of wrongful dissociation?

A heated disagreement is grounds for dissociation of a partner with the business.

Which of the following is true about the effect of LLP statutes after appointment of a new partner?

Which of the following causes a dissociation of a partnership?

Which of the following causes dissociation?

When proceeds from the sale of partnership assets are being distributed during winding up,which of the following is settled first?

Which of the following is true about the effect of partnership agreement?

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