Question 1

The death of a limited partner dissolves a limited partnership.

Accepted Answer

A) True 
 B)False

Question 2

On a partner's dissociation, his or her right to participate in the management and conduct of the business terminates.

Accepted Answer

A) True 
 B)False

Question 3

Tundi is a partner in YooHoo! Amusement, a new partnership. A YooHoo! debt comes due. Tundi is

Accepted Answer

A)   not liable for the debt.
B)   only liable for the debt up to the amount of his capital contribution.
C)   personally liable only to the extent the other partners do not pay.
D)   personally liable to the full extent of the debt.

Question 4

A limited liability partnership must be formed in compliance with state law.

Accepted Answer

A) True 
 B)False

Question 5

Dunn and Etta are limited partners in Fancee Fashion Stores, a limited partner?ship. In terms of the firm's books, Dunn and Etta are entitled to

Accepted Answer

A)   access in proportion to their participation in management of the firm.
B)   access to the parts that directly relate to their capital contributions.
C)   no access.
D)   total access.

Question 6

Ron is a limited partner, and Steve is a general partner of Total Financial Management, a limited partnership. Steve manages the firm. Ron has some expertise in the area and be?lieves that he could do a better job than Steve at managing, but he abstains from becoming actively in?volved. Why might he choose to keep away from management activities?

Accepted Answer

There is no law that expressly bars the ...

Question 7

The Uniform Commercial Code governs the operation of partnerships.

Accepted Answer

A) True 
 B)False

Question 8

In a limited partnership, the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

Accepted Answer

A) True 
 B)False

Question 9

In a limited liability partnership, a partner can be exempt from personal liability for partnership obligations.

Accepted Answer

A) True 
 B)False

Question 10

A limited partner who gives a general partner ad?vice on matters relating to the management of the partnership cannot be liable as a general partner.

Accepted Answer

A) True 
 B)False

Question 11

Sabin and Tyler agree while talking on the phone to form a partner?ship. Their partnership agreement is legally binding

Accepted Answer

A)   only if a third person knows of the agreement.
B)   only if the agreement is reduced to writing.
C)   only if the parties exchange valid consideration.
D)   without more.

Question 12

In most states, a general partner is jointly and severally liable for all partnership obligations.

Accepted Answer

A) True 
 B)False

Question 13

Joint ownership of property in and of itself creates a partnership.

Accepted Answer

A) True 
 B)False

Question 14

In winding up a general partnership, creditors are paid before partners receive their capital contributions.

Accepted Answer

A) True 
 B)False

Question 15

With a few exceptions, all of the rules that govern partnerships apply to limited liability partnerships.

Accepted Answer

A) True 
 B)False

Question 16

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

Accepted Answer

A)   not liable for the debt.
B)   only liable for the debt up to the amount of his capital contribution.
C)   personally liable only to the extent the other partners do not pay.
D)   personally liable to the full extent of the debt.

Question 17

Rick and Sandy are limited partners in Total Profit Enterprises, a limited part?ner?ship. To avoid personal liability for partnership obligations, they must not

Accepted Answer

A)   acquire an interest in the firm.
B)   contribute property to the firm.
C)   engage in activities independent of the firm's business.
D)   participate in the firm's management.

Question 18

For most purposes, the law recognizes a partnership as an aggregate of its members.

Accepted Answer

A) True 
 B)False

Question 19

A partner cannot "wrongfully" dissociate from a partnership.

Accepted Answer

A) True 
 B)False

Question 20

A partner's fiduciary duties may be waived or eliminated in the partnership agreement.

Accepted Answer

A) True 
 B)False

Exam 36: Partnerships and Limited Liability Partnerships

A limited partner who gives a general partner ad?vice on matters relating to the management of the partnership cannot be liable as a general partner.

Correct Answer
verified

Dunn and Etta are limited partners in Fancee Fashion Stores, a limited partner?ship. In terms of the firm's books, Dunn and Etta are entitled to

Correct Answer
verified

The Uniform Commercial Code governs the operation of partnerships.

Correct Answer
verified

In a limited liability partnership, a partner can be exempt from personal liability for partnership obligations.

Correct Answer
verified

Joint ownership of property in and of itself creates a partnership.

Correct Answer
verified

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

Correct Answer
verified

On a partner's dissociation, his or her right to participate in the management and conduct of the business terminates.

Correct Answer
verified

Sabin and Tyler agree while talking on the phone to form a partner?ship. Their partnership agreement is legally binding

Correct Answer
verified

Rick and Sandy are limited partners in Total Profit Enterprises, a limited part?ner?ship. To avoid personal liability for partnership obligations, they must not

Correct Answer
verified

A partner's fiduciary duties may be waived or eliminated in the partnership agreement.

Correct Answer
verified

A limited liability partnership must be formed in compliance with state law.

Correct Answer
verified

For most purposes, the law recognizes a partnership as an aggregate of its members.

Correct Answer
verified

Correct Answer
verified
There is no law that expressly bars the ...
View Answer

In winding up a general partnership, creditors are paid before partners receive their capital contributions.

Correct Answer
verified

In a limited partnership, the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

Correct Answer
verified

With a few exceptions, all of the rules that govern partnerships apply to limited liability partnerships.

Correct Answer
verified

In most states, a general partner is jointly and severally liable for all partnership obligations.

Correct Answer
verified

A partner cannot "wrongfully" dissociate from a partnership.

Correct Answer
verified

Tundi is a partner in YooHoo! Amusement, a new partnership. A YooHoo! debt comes due. Tundi is

Correct Answer
verified

The death of a limited partner dissolves a limited partnership.

Correct Answer
verified

Exam 36: Partnerships and Limited Liability Partnerships

A limited partner who gives a general partner ad?vice on matters relating to the management of the partnership cannot be liable as a general partner.

Correct AnswerverifiedShow Answer

Dunn and Etta are limited partners in Fancee Fashion Stores, a limited partner?ship. In terms of the firm's books, Dunn and Etta are entitled to

Correct AnswerverifiedShow Answer

The Uniform Commercial Code governs the operation of partnerships.

Correct AnswerverifiedShow Answer

In a limited liability partnership, a partner can be exempt from personal liability for partnership obligations.

Correct AnswerverifiedShow Answer

Joint ownership of property in and of itself creates a partnership.

Correct AnswerverifiedShow Answer

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

Correct AnswerverifiedShow Answer

On a partner's dissociation, his or her right to participate in the management and conduct of the business terminates.

Correct AnswerverifiedShow Answer

Sabin and Tyler agree while talking on the phone to form a partner?ship. Their partnership agreement is legally binding

Correct AnswerverifiedShow Answer

Rick and Sandy are limited partners in Total Profit Enterprises, a limited part?ner?ship. To avoid personal liability for partnership obligations, they must not

Correct AnswerverifiedShow Answer

A partner's fiduciary duties may be waived or eliminated in the partnership agreement.

Correct AnswerverifiedShow Answer

A limited liability partnership must be formed in compliance with state law.

Correct AnswerverifiedShow Answer

For most purposes, the law recognizes a partnership as an aggregate of its members.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is no law that expressly bars the ...View AnswerShow Answer

In winding up a general partnership, creditors are paid before partners receive their capital contributions.

Correct AnswerverifiedShow Answer

In a limited partnership, the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

Correct AnswerverifiedShow Answer

With a few exceptions, all of the rules that govern partnerships apply to limited liability partnerships.

Correct AnswerverifiedShow Answer

In most states, a general partner is jointly and severally liable for all partnership obligations.

Correct AnswerverifiedShow Answer

A partner cannot "wrongfully" dissociate from a partnership.

Correct AnswerverifiedShow Answer

Tundi is a partner in YooHoo! Amusement, a new partnership. A YooHoo! debt comes due. Tundi is

Correct AnswerverifiedShow Answer

The death of a limited partner dissolves a limited partnership.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There is no law that expressly bars the ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified