Question 1

Limited partners have liability:

Accepted Answer

A)  for the full amount of partnership debts. 
B)  only for the amount of their contribution. 
C)  for the negligent acts of the general partner. 
D)  none of the above 
A)  for the full amount of partnership debts. 
B)  only for the amount of their contribution. 
C)  for the negligent acts of the general partner. 
D)  none of the above

Question 2

Watered shares are shares for which the purchaser did pay more than par but less than full market value.

Accepted Answer

A) True 
 B)False

Question 3

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Accepted Answer

A) True 
 B)False

Question 4

Which is the proper order for distribution of assets upon dissolution of a limited partnership?

Accepted Answer

A)  outside creditors; distributions owed to partners; capital contributions; remainder split according to distribution agreement 
B)  outside creditors; limited partners' profits; limited partners' capital; general partners' advances; general partners' profit; general partners' capital 
C)  limited partners' capital; outside creditors; limited partners' advances; general partners' capital and profits 
D)  none of the above 
A)  outside creditors; distributions owed to partners; capital contributions; remainder split according to distribution agreement 
B)  outside creditors; limited partners' profits; limited partners' capital; general partners' advances; general partners' profit; general partners' capital 
C)  limited partners' capital; outside creditors; limited partners' advances; general partners' capital and profits 
D)  none of the above

Question 5

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are:

Accepted Answer

A)  wages or rent. 
B)  not shared equally. 
C)  income. 
D)  all of the above 
A)  wages or rent. 
B)  not shared equally. 
C)  income. 
D)  all of the above

Question 6

A limited partnership:

Accepted Answer

A)  requires at least one general partner. 
B)  can be created by implication. 
C)  must be run by the limited partners. 
D)  all of the above 
A)  requires at least one general partner. 
B)  can be created by implication. 
C)  must be run by the limited partners. 
D)  all of the above

Question 7

A proxy is valid only for 11 months.

Accepted Answer

A) True 
 B)False

Question 8

Allied Van Lines has structured its company by giving its franchisees stock ownership in the company. On the stock is the following language:
NOTE: Restrictions apply to ownership of this stock. Only franchisees and employees of Allied Van Lines can own this stock. In the event of a franchise or employment termination, the stock must first be offered to the Allied Board for purchase. Is the restriction valid?

Accepted Answer

Yes, the restriction is probab

Question 9

The assignment of limited partnership interests:

Accepted Answer

A)  is prohibited by the ULPA. 
B)  may be a sale of securities subject to federal regulation. 
C)  is liberally permitted under the Internal Revenue Code. 
D)  none of the above 
A)  is prohibited by the ULPA. 
B)  may be a sale of securities subject to federal regulation. 
C)  is liberally permitted under the Internal Revenue Code. 
D)  none of the above

Question 10

A partner's interest in a partnership is not transferable.

Accepted Answer

A) True 
 B)False

Question 11

Draw a chart comparing the formation, liability, taxation, and management of partnerships, limited partnerships, corporations, and limited liability companies.

Accepted Answer

Use the ch

Question 12

Which of the following is not required for the certificate of limited partnership (under RULPA)?

Accepted Answer

A)  names of the limited partners 
B)  capital contributions of the partners 
C)  the profit-sharing arrangement 
D)  None of the above are required. 
A)  names of the limited partners 
B)  capital contributions of the partners 
C)  the profit-sharing arrangement 
D)  None of the above are required.

Question 13

ABC partnership owns and operates a potato farm in Idaho. A, B, and C are the partners/owners. C is having significant personal financial problems. Savoy Stores has obtained a judgment against C in the amount of $l2,341. Savoy knows that ABC is about to harvest its potatoes. When the ABC potatoes are being transported for processing, Savoy takes one-third of the potatoes to satisfy the debt. A and B object. C claims he is using the partnership property to satisfy a debt. Can C do this?

Accepted Answer

No. Creditors can attach the p

Question 14

A corporation is only a domestic corporation in its state of incorporation.

Accepted Answer

A) True 
 B)False

Question 15

Corporations pay double taxes, on income and shareholders on dividends.

Accepted Answer

A) True 
 B)False

Question 16

All owners in an LLP have limited liability.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following forms of business organizations does not have the pass-through feature of income and losses?

Accepted Answer

A)  partnership 
B)  limited partnership 
C)  S corporation 
D)  corporation 
A)  partnership 
B)  limited partnership 
C)  S corporation 
D)  corporation

Question 18

A joint venture:

Accepted Answer

A)  is a partnership limited in scope. 
B)  is a limited liability company. 
C)  must be incorporated to be recognized. 
D)  none of the above 
A)  is a partnership limited in scope. 
B)  is a limited liability company. 
C)  must be incorporated to be recognized. 
D)  none of the above

Question 19

Which of the following forms of business structure provides limited liability for the personal assets of the owners?

Accepted Answer

A)  sole proprietorship 
B)  general partnership 
C)  LLC 
D)  partnership by implication 
E)  All of the above provide limited liability. 
A)  sole proprietorship 
B)  general partnership 
C)  LLC 
D)  partnership by implication 
E)  All of the above provide limited liability.

Question 20

Dissolution:

Accepted Answer

A)  is the same as termination. 
B)  can result from a limited partner leaving the partnership. 
C)  can result from the death of a partner. 
D)  all of the above 
A)  is the same as termination. 
B)  can result from a limited partner leaving the partnership. 
C)  can result from the death of a partner. 
D)  all of the above

Limited partners have liability:

Watered shares are shares for which the purchaser did pay more than par but less than full market value.

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Which is the proper order for distribution of assets upon dissolution of a limited partnership?

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are:

A limited partnership:

A proxy is valid only for 11 months.

The assignment of limited partnership interests:

A partner's interest in a partnership is not transferable.

Draw a chart comparing the formation, liability, taxation, and management of partnerships, limited partnerships, corporations, and limited liability companies.

Which of the following is not required for the certificate of limited partnership (under RULPA)?

A corporation is only a domestic corporation in its state of incorporation.

Corporations pay double taxes, on income and shareholders on dividends.

All owners in an LLP have limited liability.

Which of the following forms of business organizations does not have the pass-through feature of income and losses?

A joint venture:

Which of the following forms of business structure provides limited liability for the personal assets of the owners?

Dissolution:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters

Exam 18: Governance and Structure: Forms of Doing Business

Limited partners have liability:

Watered shares are shares for which the purchaser did pay more than par but less than full market value.

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Which is the proper order for distribution of assets upon dissolution of a limited partnership?

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are:

A limited partnership:

A proxy is valid only for 11 months.

The assignment of limited partnership interests:

A partner's interest in a partnership is not transferable.

Draw a chart comparing the formation, liability, taxation, and management of partnerships, limited partnerships, corporations, and limited liability companies.

Which of the following is not required for the certificate of limited partnership (under RULPA)?

A corporation is only a domestic corporation in its state of incorporation.

Corporations pay double taxes, on income and shareholders on dividends.

All owners in an LLP have limited liability.

Which of the following forms of business organizations does not have the pass-through feature of income and losses?

A joint venture:

Which of the following forms of business structure provides limited liability for the personal assets of the owners?

Dissolution:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters