Question 1

A limited liability partnership can have a maximum of 20 limited partners.

Accepted Answer

A) True 
 B)False  False

Question 2

The sharing of profits and losses is complete proof of partnership.

Accepted Answer

A) True 
 B)False  False

Question 3

An important difference between a partnership and a joint venture is the fiduciary nature of a partnership relationship.

Accepted Answer

A) True 
 B)False  True

Question 4

In the context of a partnership, 'joint and several liability' means that:

Accepted Answer

A)  The partners can only be sued separately if action against the firm fails. 
B)  The partners can be sued collectively in the name of the firm or individually in their own name. 
C)  Any legal action must name the firm and each partner individually. 
D)  All of the above. 
A)  The partners can only be sued separately if action against the firm fails. 
B)  The partners can be sued collectively in the name of the firm or individually in their own name. 
C)  Any legal action must name the firm and each partner individually. 
D)  All of the above.

Question 5

Partnerships are regulated by:

Accepted Answer

A)  The common law. 
B)  Equity. 
C)  The Partnership Act of the relevant state or territory. 
D)  All of the above. 
A)  The common law. 
B)  Equity. 
C)  The Partnership Act of the relevant state or territory. 
D)  All of the above.

Question 6

Conducting an isolated transaction together suggests a joint venture rather than a partnership.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about partner's rights is NOT true?

Accepted Answer

A)  A partner is entitled to interest on any money loaned to the business. 
B)  Each partner is entitled to claim reasonable remuneration for working for the partnership. 
C)  Any partner may take part in the management of the business. 
D)  No partner is entitled to interest on their investment in the partnership until net profit has been determined. 
A)  A partner is entitled to interest on any money loaned to the business. 
B)  Each partner is entitled to claim reasonable remuneration for working for the partnership. 
C)  Any partner may take part in the management of the business. 
D)  No partner is entitled to interest on their investment in the partnership until net profit has been determined.

Question 8

In what circumstances can a majority of partners expel a partner?

Accepted Answer

A)  If the power to expel is contained in the partnership agreement and exercised in good faith. 
B)  Partners cannot be expelled by a majority under any circumstances. 
C)  If the partnership agreement contains the power to expel. 
D)  Expulsion is allowed in equity for breach of fiduciary duties. 
A)  If the power to expel is contained in the partnership agreement and exercised in good faith. 
B)  Partners cannot be expelled by a majority under any circumstances. 
C)  If the partnership agreement contains the power to expel. 
D)  Expulsion is allowed in equity for breach of fiduciary duties.

Question 9

What is a joint venture?

Accepted Answer

A joint venture is a one-off agreement b

Question 10

The existence of a partnership is to be determined from what the parties do rather than what the parties call themselves.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about partner's rights is true?

Accepted Answer

A)  A partner who incurs liabilities at any time is entitled to indemnity from the other partners. 
B)  Any partner may access the partnership books in order to inspect and copy them. 
C)  Partners share in any profits and losses of the business in proportion to their investment in the business. 
D)  The consent of a majority of the partners is needed to introduce a new partner to the partnership. 
A)  A partner who incurs liabilities at any time is entitled to indemnity from the other partners. 
B)  Any partner may access the partnership books in order to inspect and copy them. 
C)  Partners share in any profits and losses of the business in proportion to their investment in the business. 
D)  The consent of a majority of the partners is needed to introduce a new partner to the partnership.

Question 12

What are the three factors that determine whether a partnership exists?

Accepted Answer

A partnership is defined as the relation

Question 13

Expulsion of a partner has the same effect as dissolution of a partnership.

Accepted Answer

A) True 
 B)False

Question 14

A limited liability partnership can have a maximum of 20 general partners.

Accepted Answer

A) True 
 B)False

Question 15

If notice of their retirement is given to all of the persons who have had dealings with the partnership, a retiring partner is liable for:

Accepted Answer

A)  Only the debts of the partnership incurred after they retired. 
B)  Only the debts of the partnership incurred before they retired. 
C)  None of the debts of the partnership. 
D)  All of the debts of the partnership. 
A)  Only the debts of the partnership incurred after they retired. 
B)  Only the debts of the partnership incurred before they retired. 
C)  None of the debts of the partnership. 
D)  All of the debts of the partnership.

Question 16

A form of property ownership in which the parties have equal shares which were created at the same time and which pass automatically to the survivor on the death of one of the parties is known as:

Accepted Answer

A)  Tenancy in common. 
B)  Unity of ownership. 
C)  Joint tenancy. 
D)  Common ownership. 
A)  Tenancy in common. 
B)  Unity of ownership. 
C)  Joint tenancy. 
D)  Common ownership.

Question 17

Which of the following is NOT an element of apparent authority?

Accepted Answer

A)  The third party was not aware that the person lacked authority. 
B)  The transaction was business of the kind carried on by the firm. 
C)  The transaction was not carried out in the usual way. 
D)  The third party knew or reasonably believed the person to be a partner. 
A)  The third party was not aware that the person lacked authority. 
B)  The transaction was business of the kind carried on by the firm. 
C)  The transaction was not carried out in the usual way. 
D)  The third party knew or reasonably believed the person to be a partner.

Question 18

A partnership may be dissolved by:

Accepted Answer

A)  Illegality. 
B)  The parties. 
C)  Operation of law. 
D)  All of the above. 
A)  Illegality. 
B)  The parties. 
C)  Operation of law. 
D)  All of the above.

Question 19

Which of the following is one of the grounds for which a court will dissolve a partnership?

Accepted Answer

A)  If one of the partners dies. 
B)  If the purpose of the partnership is or becomes illegal. 
C)  If there has been persistent breach of the partnership agreement. 
D)  If one of the partners is declared bankrupt. 
A)  If one of the partners dies. 
B)  If the purpose of the partnership is or becomes illegal. 
C)  If there has been persistent breach of the partnership agreement. 
D)  If one of the partners is declared bankrupt.

Question 20

Partnerships must be associations formed with a view to profit.

Accepted Answer

A) True 
 B)False

Exam 21: Partnerships

A limited liability partnership can have a maximum of 20 limited partners.

The sharing of profits and losses is complete proof of partnership.

An important difference between a partnership and a joint venture is the fiduciary nature of a partnership relationship.

In the context of a partnership, 'joint and several liability' means that:

Partnerships are regulated by:

Conducting an isolated transaction together suggests a joint venture rather than a partnership.

Which of the following statements about partner's rights is NOT true?

In what circumstances can a majority of partners expel a partner?

What is a joint venture?

The existence of a partnership is to be determined from what the parties do rather than what the parties call themselves.

Which of the following statements about partner's rights is true?

What are the three factors that determine whether a partnership exists?

Expulsion of a partner has the same effect as dissolution of a partnership.

A limited liability partnership can have a maximum of 20 general partners.

If notice of their retirement is given to all of the persons who have had dealings with the partnership, a retiring partner is liable for:

A form of property ownership in which the parties have equal shares which were created at the same time and which pass automatically to the survivor on the death of one of the parties is known as:

Which of the following is NOT an element of apparent authority?

A partnership may be dissolved by:

Which of the following is one of the grounds for which a court will dissolve a partnership?

Partnerships must be associations formed with a view to profit.

Legal Foundations

Origins of Australian Law

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: The Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties, Discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Agency

Introduction to Companies and Incorporated Associations

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goods

Electronic commerce

Property and mortgages

Intellectual propert

Ethics and business practice

Criminal law in a business context

Restrictive trade practices

Negotiable instruments

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

Consumer Credit and Privacy

Ethics and Regulations in Marketing and Advertising

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