Question 1

Vern is a partner in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

Accepted Answer

A)   on a complete basis.
B)   only on an "as needed" basis.
C)   only for a reasonable purpose.
D)   only related to the partner's capital contribution.E) A) and B)
F) B) and D)

Question 2

Each partner has the right to complete information concerning all aspects of partnership business.

Accepted Answer

A) True 
 B)False

Question 3

Fact Pattern 28-1 Ann starts up Bowls Bistro to sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years. Ann hires Demi to take and fill customers' orders at an hourly wage of $15.00, plus tips.
Refer to Fact Pattern 28-1. Ann and Carly are

Accepted Answer

A)   not partners, because Carly does not have an ownership interest or management rights in Bowls Bistro.
B)   not partners, because the lease includes "base rent."
C)   not partners, because the rent includes only 10 percent of the profits.
D)   partners in a partnership for two years.E) All of the above
F) None of the above

Question 4

In a limited partnership, a limited partner assumes no liability for partnership debts beyond the amount of capital contributed.

Accepted Answer

A) True 
 B)False

Question 5

A general partnership is a pass-through entity and a tax-paying entity.

Accepted Answer

A) True 
 B)False

Question 6

A foreign investor cannot be a member of a limited liability company.

Accepted Answer

A) True 
 B)False

Question 7

Sam and Terry agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Accepted Answer

A)   filed in the appropriate state office.
B)   in writing.
C)   signed by a notary public.
D)   all of the choices.E) B) and C)
F) A) and D)

Question 8

Members of a limited liability company are not allowed to participate fully in management activities.

Accepted Answer

A) True 
 B)False

Question 9

Del owns Everlast Painting, a sole proprietorship. Del's liability is

Accepted Answer

A)   limited by state statute.
B)   limited to the amount stipulated by the firm's business insurance.
C)   limited to the extent of his or her capital contribution.
D)   unlimited.E) None of the above
F) All of the above

Question 10

The sharing of profits from ownership of property proves the existence of a partnership.

Accepted Answer

A) True 
 B)False

Question 11

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit for herself. To her firm, Nora is liable for

Accepted Answer

A)   breach of the duty of care.
B)   breach of contract.
C)   breach of the duty of loyalty.
D)   nothing.E) None of the above
F) All of the above

Question 12

Partnership profits are distributed in proportion to partners' tenure and seniority.

Accepted Answer

A) True 
 B)False

Exam 28: Types of Business Organizations

Each partner has the right to complete information concerning all aspects of partnership business.

Correct Answer
verified

A general partnership is a pass-through entity and a tax-paying entity.

Correct Answer
verified

Vern is a partner in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

Correct Answer
verified

Partnership profits are distributed in proportion to partners' tenure and seniority.

Correct Answer
verified

Del owns Everlast Painting, a sole proprietorship. Del's liability is

Correct Answer
verified

Sam and Terry agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Correct Answer
verified

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit for herself. To her firm, Nora is liable for

Correct Answer
verified

Members of a limited liability company are not allowed to participate fully in management activities.

Correct Answer
verified

In a limited partnership, a limited partner assumes no liability for partnership debts beyond the amount of capital contributed.

Correct Answer
verified

Correct Answer
verified

A foreign investor cannot be a member of a limited liability company.

Correct Answer
verified

The sharing of profits from ownership of property proves the existence of a partnership.

Correct Answer
verified

Exam 28: Types of Business Organizations

Each partner has the right to complete information concerning all aspects of partnership business.

Correct AnswerverifiedShow Answer

A general partnership is a pass-through entity and a tax-paying entity.

Correct AnswerverifiedShow Answer

Vern is a partner in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

Correct AnswerverifiedShow Answer

Partnership profits are distributed in proportion to partners' tenure and seniority.

Correct AnswerverifiedShow Answer

Del owns Everlast Painting, a sole proprietorship. Del's liability is

Correct AnswerverifiedShow Answer

Sam and Terry agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

Correct AnswerverifiedShow Answer

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit for herself. To her firm, Nora is liable for

Correct AnswerverifiedShow Answer

Members of a limited liability company are not allowed to participate fully in management activities.

Correct AnswerverifiedShow Answer

In a limited partnership, a limited partner assumes no liability for partnership debts beyond the amount of capital contributed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A foreign investor cannot be a member of a limited liability company.

Correct AnswerverifiedShow Answer

The sharing of profits from ownership of property proves the existence of a partnership.

Correct AnswerverifiedShow Answer

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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Correct Answer
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Correct Answer
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