FLORIDA STATE UNIVERSITY BUL 3310 EXAM 2 FSU
BAILEY 2024
Phil has a 1/4 partnership interest in Green & Sons. He has been denied access to the partnership b
and records for over a year and he suspects that one of the partnershas been engaging in secret
business transactions using partnership funds. Phil wants to know the status of the business. Phil's
remedy in this situation is to go to a court of equity for an .
Charging order
Marshalling order
Accounting
Decree of insolvency
One partner has the ability to veto the admission of a new partner into the business. T/F?
True
John, a partner in KLM Partners, had a personal loan from First Bank for 35,000. First Bank got a
judgment against John after he defaulted on the loan. First Bank can reach John's interest in KLM
Partners and require that a receiver be appointed to take John'sshare of the partnership profits to s
the judgment. The court order that will do this is an
Marshalling order
Accounting order
Charging order
Attachment order
Partnership agreements often fund the purchase of a deceased partners' partnership interests with
Life insurance policies
Distributions of retained earnings
Levies on partnership interests
Partner advances
The bankruptcy of a partner will cause the dissolution of the partnership by operation of law.
T/F?
True
Partnership books must be kept in the firm's place of business and be accessible to allpartners
T/F?
,True
A partnership maybe created by an express agreement between the parties or it may beimplied from
conduct.
T/F?
True
Subchapter S corporations are limited to shareholders.
10
35
100
There is no limit to the number of shareholders in a Subchapter S corporation.
The written agreement between two or more persons that creates a partnership andsets for the righ
duties of each partner is the .
Articles of incorporation
Articles of partnership
By laws
charter
A partnership is a taxable entity.T/F?
False
If net profits are retained in a Subchapter S corporation, income tax must be paid by shareholders o
these earnings even though the earnings have not yet been received.T/F
True
A limited partnership must have at least one general partner and one limited partner.T/F?
True
Which of the following is an informal association of two or more persons who agree to engage as co
owners in a single business transaction?
Joint venture
General partnership
Trading group
Limited partnership
Which of the following issues do not require a unanimous vote of the partners?
Admission of a new partner
, Confession of a judgment against the partnership Disposal of the good will of the business
Hiring an office manager for 40 hours a week.
The court order directing that the share of profits due a partner be given to his or hercreditor to satis
judgment is aorder.
Charging MarshalingAccounting Collection
A partner's capital contribution may consist in business experience or service to thefirm.
T/F?
False
Partnerships are required to use the term "Company" in their names.T/F?
False
Which of the following statements about the taxation of corporations is false?
Premiums paid for employee health insurance plans are fully deductible.
Profits retained by the corporation are normally taxable to the shareholders under thecorporate pas
through rule.
Salaries paid to employees are deductible expenses for the corporation.
Most states impose license fees or franchise taxes on corporations doing business inthe state.
May is one of three limited partners in a limited partnership. Each limited partner made a capital
contribution of $50,000. Assume there is a judgment against the partnership for $300,000 and that
the partnership and the general partner are insolvent. Whatis the maximum amount that May will ha
pay on the judgment?
0: May is a limited partner so has no liability for the debts of the partnership under anycircumstance
$50,000: May's capital contribution can be applied to the debt, but she is not personallyliable beyon
$100,000: May will be liable for up to 1/3 of the judgment since there are three limitedpartners.
$300,000: As a limited partner May has joint and several liability for the debts of thepartnership so s
could be personally liable for the full amount.
By statute, a limited partnership must have a minimum of generalpartners.
onetwofourfive
A Subchapter S corporation is taxed in the same way a partnership is taxed.T/F?
True
Any change in the identity of the partners, whether through death, withdrawal, or theadding of a new
partner, results in the of the old partnership.
BAILEY 2024
Phil has a 1/4 partnership interest in Green & Sons. He has been denied access to the partnership b
and records for over a year and he suspects that one of the partnershas been engaging in secret
business transactions using partnership funds. Phil wants to know the status of the business. Phil's
remedy in this situation is to go to a court of equity for an .
Charging order
Marshalling order
Accounting
Decree of insolvency
One partner has the ability to veto the admission of a new partner into the business. T/F?
True
John, a partner in KLM Partners, had a personal loan from First Bank for 35,000. First Bank got a
judgment against John after he defaulted on the loan. First Bank can reach John's interest in KLM
Partners and require that a receiver be appointed to take John'sshare of the partnership profits to s
the judgment. The court order that will do this is an
Marshalling order
Accounting order
Charging order
Attachment order
Partnership agreements often fund the purchase of a deceased partners' partnership interests with
Life insurance policies
Distributions of retained earnings
Levies on partnership interests
Partner advances
The bankruptcy of a partner will cause the dissolution of the partnership by operation of law.
T/F?
True
Partnership books must be kept in the firm's place of business and be accessible to allpartners
T/F?
,True
A partnership maybe created by an express agreement between the parties or it may beimplied from
conduct.
T/F?
True
Subchapter S corporations are limited to shareholders.
10
35
100
There is no limit to the number of shareholders in a Subchapter S corporation.
The written agreement between two or more persons that creates a partnership andsets for the righ
duties of each partner is the .
Articles of incorporation
Articles of partnership
By laws
charter
A partnership is a taxable entity.T/F?
False
If net profits are retained in a Subchapter S corporation, income tax must be paid by shareholders o
these earnings even though the earnings have not yet been received.T/F
True
A limited partnership must have at least one general partner and one limited partner.T/F?
True
Which of the following is an informal association of two or more persons who agree to engage as co
owners in a single business transaction?
Joint venture
General partnership
Trading group
Limited partnership
Which of the following issues do not require a unanimous vote of the partners?
Admission of a new partner
, Confession of a judgment against the partnership Disposal of the good will of the business
Hiring an office manager for 40 hours a week.
The court order directing that the share of profits due a partner be given to his or hercreditor to satis
judgment is aorder.
Charging MarshalingAccounting Collection
A partner's capital contribution may consist in business experience or service to thefirm.
T/F?
False
Partnerships are required to use the term "Company" in their names.T/F?
False
Which of the following statements about the taxation of corporations is false?
Premiums paid for employee health insurance plans are fully deductible.
Profits retained by the corporation are normally taxable to the shareholders under thecorporate pas
through rule.
Salaries paid to employees are deductible expenses for the corporation.
Most states impose license fees or franchise taxes on corporations doing business inthe state.
May is one of three limited partners in a limited partnership. Each limited partner made a capital
contribution of $50,000. Assume there is a judgment against the partnership for $300,000 and that
the partnership and the general partner are insolvent. Whatis the maximum amount that May will ha
pay on the judgment?
0: May is a limited partner so has no liability for the debts of the partnership under anycircumstance
$50,000: May's capital contribution can be applied to the debt, but she is not personallyliable beyon
$100,000: May will be liable for up to 1/3 of the judgment since there are three limitedpartners.
$300,000: As a limited partner May has joint and several liability for the debts of thepartnership so s
could be personally liable for the full amount.
By statute, a limited partnership must have a minimum of generalpartners.
onetwofourfive
A Subchapter S corporation is taxed in the same way a partnership is taxed.T/F?
True
Any change in the identity of the partners, whether through death, withdrawal, or theadding of a new
partner, results in the of the old partnership.
