Question 1

States have authorized the formation of limited liability companies.

Accepted Answer

A) True 
 B)False

Question 2

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess, a business owner, is personally liable if:

Accepted Answer

A)  he is a sole proprietor of the business.
B)  the business is a corporation and he is a shareholder.
C)  he committed the tort.
D)  he is a general partner of the business.
E)  All of the above except (b) .

Question 3

Which of the following is NOT an advantage of a partnership?

Accepted Answer

A)  Partners' income taxes may be less than the income taxes would be on a corporation.
B)  Each partner has limited liability.
C)  It is possible to bring together more managerial skills than in a sole proprietorship.
D)  It is possible to bring together more capital than in a sole proprietorship.

Question 4

Which of the following forms of business association may elect that only the partners/members are taxed?

Accepted Answer

A)  General partnership.
B)  Limited partnership.
C)  Limited liability company.
D)  All of the above.

Question 5

A person who receives a share of profits of a business is presumed to be a partner in the business.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A partner who has no right to participate in control of the business and who has limited liability is called a:

Accepted Answer

A)  limited partner.
B)  nominal partner.
C)  secret partner.
D)  general partner.

Question 8

In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a:

Accepted Answer

A)  corporation.
B)  limited liability partnership.
C)  limited partnership.
D)  general partnership.

Question 9

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law, so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Accepted Answer

The basic clauses of a partnership agree...

Question 10

The statute of frauds expressly applies to a contract for the formation of a partnership.

Accepted Answer

A) True 
 B)False

Exam 31: Formation and Internal Relations of General Partnerships

In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a:

Correct Answer
verified

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess, a business owner, is personally liable if:

Correct Answer
verified

The statute of frauds expressly applies to a contract for the formation of a partnership.

Correct Answer
verified

A partner who has no right to participate in control of the business and who has limited liability is called a:

Correct Answer
verified

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law, so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Correct Answer
verified
The basic clauses of a partnership agree...
View Answer

Which of the following forms of business association may elect that only the partners/members are taxed?

Correct Answer
verified

Which of the following is NOT an advantage of a partnership?

Correct Answer
verified

States have authorized the formation of limited liability companies.

Correct Answer
verified

A person who receives a share of profits of a business is presumed to be a partner in the business.

Correct Answer
verified

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

Correct Answer
verified

Exam 31: Formation and Internal Relations of General Partnerships

In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a:

Correct AnswerverifiedShow Answer

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess, a business owner, is personally liable if:

Correct AnswerverifiedShow Answer

The statute of frauds expressly applies to a contract for the formation of a partnership.

Correct AnswerverifiedShow Answer

A partner who has no right to participate in control of the business and who has limited liability is called a:

Correct AnswerverifiedShow Answer

Assume that you and your best friend have decided to form a partnership after graduation.You have both studied business law, so you both know the importance of having a written partnership agreement.Summarize the clauses that you would include in your partnership agreement.

Correct AnswerverifiedThe basic clauses of a partnership agree...View AnswerShow Answer

Which of the following forms of business association may elect that only the partners/members are taxed?

Correct AnswerverifiedShow Answer

Which of the following is NOT an advantage of a partnership?

Correct AnswerverifiedShow Answer

States have authorized the formation of limited liability companies.

Correct AnswerverifiedShow Answer

A person who receives a share of profits of a business is presumed to be a partner in the business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The basic clauses of a partnership agree...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified