Question 1

A sole proprietorship dissolves upon the death of the owner.

Accepted Answer

A) True 
 B)False

Question 2

The 1997 Revised Act was amended in 2011 and 2013 as part of the Harmonization of Business Entity Acts project.

Accepted Answer

A) True 
 B)False

Question 3

General partnerships are used frequently in finance, insurance, accounting, real estate, law, and other services.

Accepted Answer

A) True 
 B)False

Question 4

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would lack the capacity to become a partner?

Accepted Answer

A)   A trust.
B)   An adjudicated incompetent.
C)   A corporation.
D)   All of these.

Question 6

Some states allow the formation of partnerships in which all partners have limited liability.

Accepted Answer

A) True 
 B)False

Question 7

Former partners, as well as current partners, have some rights to access partnership books and records.

Accepted Answer

A) True 
 B)False

Question 8

A partner can withdraw his partnership capital at any time.

Accepted Answer

A) True 
 B)False

Question 9

What are the ways the RUPA recognizes a partnership as an entity?

Accepted Answer

The RUPA recognizes a partnership as an ...

Question 10

The UPA treats a partnership as a legal entity for all purposes.

Accepted Answer

A) True 
 B)False

Question 11

A general partnership is formed without any formality and no documents need be filed with the state.

Accepted Answer

A) True 
 B)False

Question 12

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Accepted Answer

A)   joint tenant.
B)   tenant in common.
C)   tenant in partnership.
D)   tenant by the entireties.

Question 13

Which of the following is the correct definition for a partnership?

Accepted Answer

A)   An association of two or more persons with one or more general partners and one or more limited partners.
B)   A legal entity ordinarily consisting of an association of numerous individuals.
C)   An association of two or more persons to carry on as co-tenants in business.
D)   An association of two or more persons to carry on as co-owners a business for profit.

Question 14

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a tenant in partnership.

Accepted Answer

A) True 
 B)False

Question 15

A charitable organization cannot be formed as a partnership.

Accepted Answer

A) True 
 B)False

Question 16

The RUPA treats a partnership as a legal entity in which one of the following respects?

Accepted Answer

A)   Liability of partners for partnership obligations.
B)   For the purpose of suing or being sued.
C)   For all purposes.
D)   Assignment of a partner's interest.

Question 17

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

Accepted Answer

A) True 
 B)False

Question 18

Sole proprietorships today outnumber other unincorporated business associations.

Accepted Answer

A) True 
 B)False

Question 19

Because the statute of frauds does not apply expressly to a contract for the formation of a partnership, usually no writing is required to create the relationship.

Accepted Answer

A) True 
 B)False

Question 20

Assignment of a partner's interest will cause dissolution.

Accepted Answer

A) True 
 B)False

Exam 30: Formation and Internal Relations of General Partnerships

A sole proprietorship dissolves upon the death of the owner.

Correct AnswerverifiedShow Answer

Former partners, as well as current partners, have some rights to access partnership books and records.

Correct AnswerverifiedShow Answer

Which of the following is the correct definition for a partnership?

Correct AnswerverifiedShow Answer

What are the ways the RUPA recognizes a partnership as an entity?

Correct AnswerverifiedThe RUPA recognizes a partnership as an ...View AnswerShow Answer

The RUPA treats a partnership as a legal entity in which one of the following respects?

Correct AnswerverifiedShow Answer

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a tenant in partnership.

Correct AnswerverifiedShow Answer

Sole proprietorships today outnumber other unincorporated business associations.

Correct AnswerverifiedShow Answer

Assignment of a partner's interest will cause dissolution.

Correct AnswerverifiedShow Answer

A partner's fiduciary duty under the UPA differs in some respects from that under the RUPA.

Correct AnswerverifiedShow Answer

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

Correct AnswerverifiedShow Answer

The UPA treats a partnership as a legal entity for all purposes.

Correct AnswerverifiedShow Answer

Owners of interests in businesses with unlimited liability place their entire estate at risk.

Correct AnswerverifiedShow Answer

Because the statute of frauds does not apply expressly to a contract for the formation of a partnership, usually no writing is required to create the relationship.

Correct AnswerverifiedShow Answer

General partnerships are used frequently in finance, insurance, accounting, real estate, law, and other services.

Correct AnswerverifiedShow Answer

Some states allow the formation of partnerships in which all partners have limited liability.

Correct AnswerverifiedShow Answer

The 1997 Revised Act was amended in 2011 and 2013 as part of the Harmonization of Business Entity Acts project.

Correct AnswerverifiedShow Answer

Which of the following would lack the capacity to become a partner?

Correct AnswerverifiedShow Answer

A charitable organization cannot be formed as a partnership.

Correct AnswerverifiedShow Answer

A general partnership is formed without any formality and no documents need be filed with the state.

Correct AnswerverifiedShow Answer

A partner can withdraw his partnership capital at any time.

Correct AnswerverifiedShow Answer

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The RUPA recognizes a partnership as an ...
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