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

Regarding the formation of a general partnership,which of the following is not a legal requirement but has been described as "highly desirable"?

An S corporation:

The decision on what form of business to make a startup business is important because it will affect how much the business owner is liable and has control over the new business.

Under the doctrine of purported partners,a third party may hold liable persons who purport to be partners.

A sole proprietorship is a legal entity separate from its owner.

Which of the following is NOT an essential characteristic of a limited liability company (LLC)?

Which of the following is an advantage of a sole proprietorship?

A limited partner in a limited partnership has the right to manage the limited partnership business.

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

A group of individuals can form a partnership for the nonprofit business that provides charitable services.

A partner's ownership interest is called _____.

If a partnership leases a building that belongs to one of the partners,the property is said to be owned by the partnership.

The equity of a partnership is called partnership capital.

Which of the following is true about a partnership?

Sue has 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?

If a third party deals with a person who appears to be the partner of another person,and the third party is harmed,it may recover damages under:

A(n)_____ is a limited partnership whose partners have elected limited liability status for all the partners.

Abe and Carlos want to form a general partnership.What must they do in order to create this legal form of business?

A limited partnership:

In a limited partnership,general partners: