Question 1

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Accepted Answer

A) True 
 B)False

Question 2

Carl sells Direct Marketing Enterprises,a sole proprietorship,to Eve.This is a transfer of

Accepted Answer

A)  a license.
B)  a trade name.
C)  the formula to make a product.
D)  the ownership of the business.

Question 3

A sole proprietorship lacks continuity on the death of the proprietor.

Accepted Answer

A) True 
 B)False

Question 4

A sole proprietor owns the entire business but does not receive all of the profit.

Accepted Answer

A) True 
 B)False

Question 5

Federal law permits a partnership to be treated as an entity in suits in federal courts.

Accepted Answer

A) True 
 B)False

Question 6

China Bank is a foreign entity-a firm owned and operated by investors in a foreign country.With respect to an LLC in the United States,China Bank can

Accepted Answer

A)  act as a creditor,but cannot otherwise invest or participate.
B)  become a member.
C)  not become a member,but can participate in its operations.
D)  not become a member or otherwise participate in its operations.

Question 7

A partner's profit from a partnership is taxed as income to the firm.

Accepted Answer

A) True 
 B)False

Question 8

A partner always has the power and the right to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Question 9

Jim organized,and owns and operates,Jim's Landscaping Service in the simplest form of business organization.This is

Accepted Answer

A)  none of the choices.
B)  a limited liability company.
C)  a partnership.
D)  a sole proprietorship.

Question 10

Any partnership can be dissolved by the partners' agreement.

Accepted Answer

A) True 
 B)False

Question 11

Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Accepted Answer

A) True 
 B)False

Question 12

Fact Pattern 23-1
Desi starts up eSites, an Internet service, and leases office space in a building owned by Fred. The lease requires Desi to pay Fred a base rental of $1,250, plus 10 percent of eSites’ profits, each month. The term is two years. Desi hires Gwen to work at eSites’ tech support desk at an hourly wage of $12.50, plus a commis¬sion of 10 percent of the prof¬its. The term is also two years.
-Refer to Fact Pattern 23-1.Desi and Fred are

Accepted Answer

A)  not partners,because Fred does not have an ownership interest or management rights in eSites.
B)  not partners,because the lease includes a "base rental."
C)  not partners,because the rent includes only 10 percent of the profits.
D)  partners in a partnership for two years.

Exam 23: Sole Proprietorships, partnerships, Limited Liability Co

A partner's profit from a partnership is taxed as income to the firm.

Correct Answer
verified

A sole proprietor owns the entire business but does not receive all of the profit.

Correct Answer
verified

China Bank is a foreign entity-a firm owned and operated by investors in a foreign country.With respect to an LLC in the United States,China Bank can

Correct Answer
verified

Any partnership can be dissolved by the partners' agreement.

Correct Answer
verified

Jim organized,and owns and operates,Jim's Landscaping Service in the simplest form of business organization.This is

Correct Answer
verified

Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Correct Answer
verified

Federal law permits a partnership to be treated as an entity in suits in federal courts.

Correct Answer
verified

Carl sells Direct Marketing Enterprises,a sole proprietorship,to Eve.This is a transfer of

Correct Answer
verified

Correct Answer
verified

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Correct Answer
verified

A partner always has the power and the right to dissociate from the partnership.

Correct Answer
verified

A sole proprietorship lacks continuity on the death of the proprietor.

Correct Answer
verified

Exam 23: Sole Proprietorships, partnerships, Limited Liability Co

A partner's profit from a partnership is taxed as income to the firm.

Correct AnswerverifiedShow Answer

A sole proprietor owns the entire business but does not receive all of the profit.

Correct AnswerverifiedShow Answer

China Bank is a foreign entity-a firm owned and operated by investors in a foreign country.With respect to an LLC in the United States,China Bank can

Correct AnswerverifiedShow Answer

Any partnership can be dissolved by the partners' agreement.

Correct AnswerverifiedShow Answer

Jim organized,and owns and operates,Jim's Landscaping Service in the simplest form of business organization.This is

Correct AnswerverifiedShow Answer

Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Correct AnswerverifiedShow Answer

Federal law permits a partnership to be treated as an entity in suits in federal courts.

Correct AnswerverifiedShow Answer

Carl sells Direct Marketing Enterprises,a sole proprietorship,to Eve.This is a transfer of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Correct AnswerverifiedShow Answer

A partner always has the power and the right to dissociate from the partnership.

Correct AnswerverifiedShow Answer

A sole proprietorship lacks continuity on the death of the proprietor.

Correct AnswerverifiedShow Answer

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