Business Law Today, Standard Text & Summarized Cases 12th Edition By Roger LeRoy Miller (Test Bank )

Test Bank for Business Law
Today, Standard Text &
Summarized Cases 12th
Edition By Roger LeRoy
Miller (All Chapters 1-36,
100% Original Verified, A+
Grade)
Part 1: Chapter 27-36
Part 2: Chapter 17-26
Part 3: Chapter 1-16

,Name: Class: Date:

Chapter 27: All Forms of Partnership
True / False

1. One of the essential elements of a general partnership is a right to participate in the control of a business.
a. True
b. False
ANSWER: True

2. A single person carrying on a business for profit, with control over its operation, can form a partnership.
a. True
b. False
ANSWER: False

3. The Uniform Partnership Act governs the operation of partnerships in spite of a different agreement among
the partners.
a. True
b. False
ANSWER: False

4. One of the essential elements of a partnership is good faith.
a. True
b. False
ANSWER: False

5. In many instances, agency law governs the relationships among partners.
a. True
b. False
ANSWER: True

6. The payment of a percentage of profits from the ownership of property to repay a loan does not prove the
existence of a partnership.
a. True
b. False
ANSWER: True

7. Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of
the partnership.
a. True
b. False
ANSWER: False

8. Generally, the law recognizes a partnership as an independent entity.
a. True
b. False
ANSWER: False
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,Name: Class: Date:

Chapter 27: All Forms of Partnership
9. At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.
a. True
b. False
ANSWER: False

10. When there is no formal, written partnership agreement, an agreement to form a partnership is
unenforceable.
a. True
b. False
ANSWER: False

11. The articles of partnership can include any terms that the partners wish, including terms that might be illegal
or against public policy in other situations.
a. True
b. False
ANSWER: False

12. A partner who withdraws from a partnership for a term before its expiration date can be held liable for any
resulting losses.
a. True
b. False
ANSWER: True

13. When a person who is not a partner holds himself or herself out as a partner, a court may impose liability—
and partnership rights—on the alleged partner.
a. True
b. False
ANSWER: False

14. A partnership agreement must apportion profits and losses in the same ratio as the partners’ investment of
time and capital in the business.
a. True
b. False
ANSWER: False

15. Only a managing partner has the right to full and complete information concerning the conduct of all aspects
of partnership business.
a. True
b. False
ANSWER: False

16. Every act of a partner concerning partnership business binds the firm.
a. True
b. False

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, Name: Class: Date:

Chapter 27: All Forms of Partnership
ANSWER: True

17. A partner is liable for simple negligence in judgment in conducting partnership business because such an act
implies intent to engage in misconduct.
a. True
b. False
ANSWER: False

18. A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary
duty owed to the firm.
a. True
b. False
ANSWER: False

19. A partner can bring an action for an accounting during the term of the partnership and the firm’s property
can be sold to satisfy the partner’s personal debts.
a. True
b. False
ANSWER: False

20. In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must
file an action against the entire firm.
a. True
b. False
ANSWER: False

21. A partner can be held liable for a partnership obligation only if he or she participated in, or knew about,
whatever it was that gave rise to the obligation.
a. True
b. False
ANSWER: False

22. Dissociation occurs when a partner ceases to be associated in the carrying on of the partnership business.
a. True
b. False
ANSWER: True

23. Regardless of the partners’ consent or agreement, the voluntary dissociation of a partner begins the
dissolution of the partnership.
a. True
b. False
ANSWER: False

24. A partner always has the power to dissociate from the partnership.

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