BADM 201 Exam 4 – Business Administration Study Guide, Key Concepts and
Practice Review
owners of interests in businesses with unlimited liability place their entire estate at risk
true or false - ✔✔true
"partnership property" is the sum of the partnership's assets, including all property acquired by
a partnership
true or false - ✔✔true
a partner can withdraw his partnership capital at any time
true or false - ✔✔false
a sole proprietorship dissolves upon the death of the owner
true or false - ✔✔true
general partnerships are used frequently in finance, insurance, accounting, real estate, law, and
other services
true or false - ✔✔true
no person may become a member of a partnership without the consent of all the partners
,true or false - ✔✔true
a person who receives a share of profits of a business is presumed to be a partner
true or false - ✔✔true
Kean and Bubnick are real estate agents who share commissions on joint sales. this sharing of
gross returns establishes a partnership unless kean and bubnick have a written agreement to
the contrary
true or false - ✔✔false
a charitable organization cannot be formed as a partnership
true or false - ✔✔true
anita, in violation of a specific agreement not to extend credit over $1,000 without the other
partners' approval, extends credit of $2,000 to a friend. anita will be held personally liable to
the partners for any unpaid debt since she violated the duty of obedience
true or false - ✔✔true
each partner, unless otherwise agreed, has equal rights in the management and conduct of the
business of a general or a limited partnership
true or false - ✔✔false
, alice and brad enter into a partnership, which becomes insolvent, as does brad. alice is fully
liable for the debts of the partnership
true or false - ✔✔true
corporations today outnumber unincorporated business associations plus sole proprietorships
true or false - ✔✔false
states have authorized the formation of limited liability companies
true or false - ✔✔true
each partner has an interest in the partnership, which includes his share of profits and losses,
his right to receive distributions, and his management rights
true or false - ✔✔true
a general partnership is formed without any formality and no documents need to be filed with
the state
true or false - ✔✔true
a partner has all but which of the following duties
a) a duty of faithful service to the best of his ability
b)a duty to act in accordance with the partnership agreement
Practice Review
owners of interests in businesses with unlimited liability place their entire estate at risk
true or false - ✔✔true
"partnership property" is the sum of the partnership's assets, including all property acquired by
a partnership
true or false - ✔✔true
a partner can withdraw his partnership capital at any time
true or false - ✔✔false
a sole proprietorship dissolves upon the death of the owner
true or false - ✔✔true
general partnerships are used frequently in finance, insurance, accounting, real estate, law, and
other services
true or false - ✔✔true
no person may become a member of a partnership without the consent of all the partners
,true or false - ✔✔true
a person who receives a share of profits of a business is presumed to be a partner
true or false - ✔✔true
Kean and Bubnick are real estate agents who share commissions on joint sales. this sharing of
gross returns establishes a partnership unless kean and bubnick have a written agreement to
the contrary
true or false - ✔✔false
a charitable organization cannot be formed as a partnership
true or false - ✔✔true
anita, in violation of a specific agreement not to extend credit over $1,000 without the other
partners' approval, extends credit of $2,000 to a friend. anita will be held personally liable to
the partners for any unpaid debt since she violated the duty of obedience
true or false - ✔✔true
each partner, unless otherwise agreed, has equal rights in the management and conduct of the
business of a general or a limited partnership
true or false - ✔✔false
, alice and brad enter into a partnership, which becomes insolvent, as does brad. alice is fully
liable for the debts of the partnership
true or false - ✔✔true
corporations today outnumber unincorporated business associations plus sole proprietorships
true or false - ✔✔false
states have authorized the formation of limited liability companies
true or false - ✔✔true
each partner has an interest in the partnership, which includes his share of profits and losses,
his right to receive distributions, and his management rights
true or false - ✔✔true
a general partnership is formed without any formality and no documents need to be filed with
the state
true or false - ✔✔true
a partner has all but which of the following duties
a) a duty of faithful service to the best of his ability
b)a duty to act in accordance with the partnership agreement
