Question 1

The ________ business form is recognized not only in the United States,but also in Australia,Canada,Cyprus,England,India,Israel,Russia,South Africa,Turkey,Zimbabwe,and many other nations.

Accepted Answer

A)  limited liability company
B)  partnership
C)  S corporation
D)  professional corporation

Question 2

Which of the following controls whether the partnership or an individual owns the property?

Accepted Answer

A)  Intent of the partners
B)  Invoices
C)  Whether the property is commonly used for the type of business
D)  The function of the property

Question 3

In many public meetings,John has proclaimed himself to be an equal partner of Chan's partnership business.Chan's business ran into financial difficulties.John and Chan approached a creditor to obtain a loan.The creditor gave the loan based on a false presumption that John was a partner in the business too.Can John be made liable for the loan?

Accepted Answer

A)  Yes,because John is a close acquaintance of Chan;thus,it is his ethical duty to help Chan during her financial trouble.
B)  Yes,because John is a purported partner;public representations of his partner status make him personally liable for the debt.
C)  No,because he is not legally a partner;the creditor should have checked the partnership agreement before advancing the loan.
D)  No,because John did not participate in the business;he was thus not a member of the partnership business.

Question 4

Which of the following is not a necessary element of the definition of partnership according to the RUPA?

Accepted Answer

A)  Co-ownership of the business
B)  Association of two or more persons
C)  Limited liability of partners
D)  Carrying on of a business

Question 5

According to the RUPA's rules that determine when property is acquired by a partnership,which of the following statements is false?

Accepted Answer

A)  Property belongs to the partnership if the property is transferred to the partnership in its name.
B)  Property belongs to the partnership if the property is transferred to any partner acting as a partner by a transfer document that names the partnership.
C)  Property belongs to the partnership if the property is purchased with a partner's funds.
D)  Property belongs to the partnership if the property is transferred to any partner by a transfer document indicating the partner's status as a partner or that a partnership exists.

Question 6

Which legal form of business has the ability to attract the greatest amount of capital from investors?

Accepted Answer

A)  A limited liability company
B)  A partnership
C)  A corporation
D)  A sole proprietorship

Question 7

The decision on what form of business to make a startup business is important because it will affect the business owner's liability and control of the business.

Accepted Answer

A) True 
 B)False

Question 8

A sole proprietorship lasts for how long if it continues to run unabated?

Accepted Answer

A)  For 100 years
B)  10 years with an option to renew for another 10 years
C)  Until the death of the owner
D)  30 years then the business has to be reformed

Question 9

Sue transferred her transferable interest of the partnership business to her creditor to discharge her debt.However,Sue is an efficient manager and she still manages the business,even after the transfer.Is she still a partner?

Accepted Answer

Yes.By itself a partner's transfer of hi...

Question 10

A ________ is a partnership whose partners have elected limited liability status.

Accepted Answer

A)  limited liability company
B)  professional corporation
C)  professional partnership
D)  limited liability partnership

Exam 37: Introduction to Forms of Business and Formation of Partnerships

Which legal form of business has the ability to attract the greatest amount of capital from investors?

Correct Answer
verified

The decision on what form of business to make a startup business is important because it will affect the business owner's liability and control of the business.

Correct Answer
verified

A sole proprietorship lasts for how long if it continues to run unabated?

Correct Answer
verified

The ________ business form is recognized not only in the United States,but also in Australia,Canada,Cyprus,England,India,Israel,Russia,South Africa,Turkey,Zimbabwe,and many other nations.

Correct Answer
verified

Which of the following controls whether the partnership or an individual owns the property?

Correct Answer
verified

According to the RUPA's rules that determine when property is acquired by a partnership,which of the following statements is false?

Correct Answer
verified

A ________ is a partnership whose partners have elected limited liability status.

Correct Answer
verified

Correct Answer
verified

Sue transferred her transferable interest of the partnership business to her creditor to discharge her debt.However,Sue is an efficient manager and she still manages the business,even after the transfer.Is she still a partner?

Correct Answer
verified
Yes.By itself a partner's transfer of hi...
View Answer

Which of the following is not a necessary element of the definition of partnership according to the RUPA?

Correct Answer
verified

Exam 37: Introduction to Forms of Business and Formation of Partnerships

Which legal form of business has the ability to attract the greatest amount of capital from investors?

Correct AnswerverifiedShow Answer

The decision on what form of business to make a startup business is important because it will affect the business owner's liability and control of the business.

Correct AnswerverifiedShow Answer

A sole proprietorship lasts for how long if it continues to run unabated?

Correct AnswerverifiedShow Answer

The ________ business form is recognized not only in the United States,but also in Australia,Canada,Cyprus,England,India,Israel,Russia,South Africa,Turkey,Zimbabwe,and many other nations.

Correct AnswerverifiedShow Answer

Which of the following controls whether the partnership or an individual owns the property?

Correct AnswerverifiedShow Answer

According to the RUPA's rules that determine when property is acquired by a partnership,which of the following statements is false?

Correct AnswerverifiedShow Answer

A ________ is a partnership whose partners have elected limited liability status.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sue transferred her transferable interest of the partnership business to her creditor to discharge her debt.However,Sue is an efficient manager and she still manages the business,even after the transfer.Is she still a partner?

Correct AnswerverifiedYes.By itself a partner's transfer of hi...View AnswerShow Answer

Which of the following is not a necessary element of the definition of partnership according to the RUPA?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Yes.By itself a partner's transfer of hi...
View Answer

Correct Answer
verified