Question 1

A partner has the power to dissociate a partnership at will at any time.

Accepted Answer

A) True 
 B)False  True

Question 2

The death of a partner before the expiration of the term of a partnership is a nonwrongful dissociation.

Accepted Answer

A) True 
 B)False  True

Question 3

As per RUPA, if a nonwrongfully dissociated partner demands payment from the partnership, he should be paid:

Accepted Answer

A)  within 90 days from the date of demand. 
B)  within 120 days from the date of demand. 
C)  within no such specified period. 
D)  within such time as per the terms and conditions of the partnership. 
A)  within 90 days from the date of demand. 
B)  within 120 days from the date of demand. 
C)  within no such specified period. 
D)  within such time as per the terms and conditions of the partnership. B

Question 4

Which of the following is true about buyout of nonwrongfully dissociated partners?

Accepted Answer

A)  The partnership may wait to buy out the partner until the end of the partnership's term. 
B)  The buyout price must deduct the interest from the date of dissociation. 
C)  The dissociated partner cannot ask the court to determine the buyout price. 
D)  The partner must be paid in cash within 120 days. 
A)  The partnership may wait to buy out the partner until the end of the partnership's term. 
B)  The buyout price must deduct the interest from the date of dissociation. 
C)  The dissociated partner cannot ask the court to determine the buyout price. 
D)  The partner must be paid in cash within 120 days.

Question 5

Termination of a partnership occurs automatically after:

Accepted Answer

A)  wrongful dissociation has occurred. 
B)  dissolution has occurred. 
C)  the assets of the partnership have been distributed. 
D)  the winding up process has begun. 
A)  wrongful dissociation has occurred. 
B)  dissolution has occurred. 
C)  the assets of the partnership have been distributed. 
D)  the winding up process has begun.

Question 6

A & K Inc. obtains a charging order against Bob, a partner in Foter and Poter Partnership. Such an act will cause the partnership to dissociate.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a wrongful dissociation?

Accepted Answer

A)  A partner retires at age 70 when the partnership agreement allows partners to retire at age 60 
B)  A partner assigns his partnership assets to a personal creditor 
C)  A judicial dissociation due to a partner's persistent and substantial use of partnership property for his own benefit 
D)  Death of a partner 
A)  A partner retires at age 70 when the partnership agreement allows partners to retire at age 60 
B)  A partner assigns his partnership assets to a personal creditor 
C)  A judicial dissociation due to a partner's persistent and substantial use of partnership property for his own benefit 
D)  Death of a partner

Question 8

The Barrel & Wine partnership is being wound up and liquidated. Net assets are to be distributed according to which of the following order of priority?

Accepted Answer

A)  First to creditors who are not partners, then to creditors who are partners 
B)  First to all creditors, then to partners as per their capital accounts 
C)  First to partners per their capital accounts, then to all creditors 
D)  First to partners who have made loans to the partnership, then to all other creditors 
A)  First to creditors who are not partners, then to creditors who are partners 
B)  First to all creditors, then to partners as per their capital accounts 
C)  First to partners per their capital accounts, then to all creditors 
D)  First to partners who have made loans to the partnership, then to all other creditors

Question 9

Emmy, Shane, and Rusty are partners of the firm Esha Associates. Rusty nonwrongfully dissociates himself from the partnership. Under these circumstances, Rusty will not be liable to the creditors for the liabilities incurred while he was partner only:

Accepted Answer

A)  if all the partners consent to it. 
B)  if there is an agreement. 
C)  if there is a court order. 
D)  by novation. 
A)  if all the partners consent to it. 
B)  if there is an agreement. 
C)  if there is a court order. 
D)  by novation.

Question 10

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 11

Which of the following is true about a wrongfully dissociated partner?

Accepted Answer

A)  He may perform the winding up. 
B)  He may demand the partnership be dissolved. 
C)  He is not entitled to the value of any of his partnership interest. 
D)  He is entitled to his share of the partnership interest; minus the damages he caused the partnership. 
A)  He may perform the winding up. 
B)  He may demand the partnership be dissolved. 
C)  He is not entitled to the value of any of his partnership interest. 
D)  He is entitled to his share of the partnership interest; minus the damages he caused the partnership.

Question 12

Which of the following is true about charging a partner's capital account during distribution?

Accepted Answer

A)  Losses from sale of partnership assets during winding up are not charged against a partner's capital account. 
B)  Partners are given the gross amount existing in their capital accounts. 
C)  On account of negative balance in a partner's account, other partners are under no obligation to contribute to set off the shortage. 
D)  If partnership creditors cannot be paid from the partnership assets, the creditors may proceed against the partners' capital accounts. 
A)  Losses from sale of partnership assets during winding up are not charged against a partner's capital account. 
B)  Partners are given the gross amount existing in their capital accounts. 
C)  On account of negative balance in a partner's account, other partners are under no obligation to contribute to set off the shortage. 
D)  If partnership creditors cannot be paid from the partnership assets, the creditors may proceed against the partners' capital accounts.

Question 13

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 14

The partnership rules of dissociation and dissolution apply to joint ventures.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true about dissociation?

Accepted Answer

A)  It is a partner's right to dissociate himself from the partnership. 
B)  A partner has the power to dissociate from the partnership at any time. 
C)  When a partner's dissociation violates the partnership agreement, it is nonwrongful dissociation. 
D)  Consequences of wrongful and nonwrongful dissociations are always the same. 
A)  It is a partner's right to dissociate himself from the partnership. 
B)  A partner has the power to dissociate from the partnership at any time. 
C)  When a partner's dissociation violates the partnership agreement, it is nonwrongful dissociation. 
D)  Consequences of wrongful and nonwrongful dissociations are always the same.

Question 16

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 17

Ace Software Co. signed a deal with Gill Associates, a partnership, and has extended credit to it. Paul, a partner in Gill associates, retires but his partners continue the business. In order to release Paul from the debt owned to Ace, which of the following must occur?

Accepted Answer

A)  The continuing partners must release Paul from liability on the debt. 
B)  Paul must not secure his release from Ace. 
C)  Paul has to contribute toward the debt as early as possible. 
D)  The continuing partners should volunteer to set off Paul's liability. 
A)  The continuing partners must release Paul from liability on the debt. 
B)  Paul must not secure his release from Ace. 
C)  Paul has to contribute toward the debt as early as possible. 
D)  The continuing partners should volunteer to set off Paul's liability.

Question 18

Discuss the rules of dissociation and dissolution for mining partnerships.

Accepted Answer

The partnership rules of dissociation an

Question 19

In limited liability partnership, most of the partners have liability for partnership obligations:

Accepted Answer

A)  beyond the partnership assets. 
B)  upto the extent of the partnership assets. 
C)  as per the partnership rules & regulation. 
D)  as per the demand of the partner. 
A)  beyond the partnership assets. 
B)  upto the extent of the partnership assets. 
C)  as per the partnership rules & regulation. 
D)  as per the demand of the partner.

Question 20

Which of the following is a nonwrongful dissociation?

Accepted Answer

A)  A partner's filing a bankruptcy petition 
B)  A partner's retirement at age 60 when the partnership agreement requires the partners to retire at age 70 
C)  A partner's willful and persistent breach of the partnership agreement 
D)  Death of a partner 
A)  A partner's filing a bankruptcy petition 
B)  A partner's retirement at age 60 when the partnership agreement requires the partners to retire at age 70 
C)  A partner's willful and persistent breach of the partnership agreement 
D)  Death of a partner

Exam 39: Partners Dissociation and Partnerships Dissolution and Winding up

A partner has the power to dissociate a partnership at will at any time.

The death of a partner before the expiration of the term of a partnership is a nonwrongful dissociation.

As per RUPA, if a nonwrongfully dissociated partner demands payment from the partnership, he should be paid:

Which of the following is true about buyout of nonwrongfully dissociated partners?

Termination of a partnership occurs automatically after:

A & K Inc. obtains a charging order against Bob, a partner in Foter and Poter Partnership. Such an act will cause the partnership to dissociate.

Which of the following is a wrongful dissociation?

The Barrel & Wine partnership is being wound up and liquidated. Net assets are to be distributed according to which of the following order of priority?

Emmy, Shane, and Rusty are partners of the firm Esha Associates. Rusty nonwrongfully dissociates himself from the partnership. Under these circumstances, Rusty will not be liable to the creditors for the liabilities incurred while he was partner only:

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

Which of the following is true about a wrongfully dissociated partner?

Which of the following is true about charging a partner's capital account during distribution?

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

The partnership rules of dissociation and dissolution apply to joint ventures.

Which of the following is true about dissociation?

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

Ace Software Co. signed a deal with Gill Associates, a partnership, and has extended credit to it. Paul, a partner in Gill associates, retires but his partners continue the business. In order to release Paul from the debt owned to Ace, which of the following must occur?

Discuss the rules of dissociation and dissolution for mining partnerships.

In limited liability partnership, most of the partners have liability for partnership obligations:

Which of the following is a nonwrongful dissociation?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

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

Crimes

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

Introduction to Forms of Business Andformation of Partnerships

Operation of Partnerships and Related Forms

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 Agencies

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

Filters