BUL 5810 Study Guide
A corporation may not be a partner in a partnership. - answer false
Under the common law, a partnership is generally considered to be a legal entity rather
than an
aggregate of individuals. - answer False
Partners may elect to have the partnership not be a separate taxable entity, so that only
the
partners are taxed. - answer True
A general partnership may be formed for a charitable purpose. - answer False
Tori and Margaret agree to form a partnership. The partnership contract between Tori
and
Margaret does not have to be in writing in order to be enforceable in the courts. -
answer True
What is considered "partnership property" is determined primarily by the partners'
intentions. - answer True
Sharing of gross returns establishes a partnership. - answerFalse
In some corporations, only the shareholders are taxed; in others, both the corporation
as an entity
is taxed and the shareholders are taxed as well. - answertrue
A partner cannot assign his interest in the partnership without dissolving the
partnership. - answerfalse
Under the RUPA, no person may become a member of a partnership without the
consent of all
the partners. - answerTrue
A partnership name may be the name of all the partners, some of them or any one of
them. - answerTrue
Under the RUPA, a partnership agreement may be written or oral, but not implied. -
answerFalse
,The UPA was amended in 2016 as part of the Bring Harmony to Business Act. -
answerFalse
A limited liability company (LLC) provides limited liability to all of its owners and permits
all of
its owners to participate in management. - answertrue
The form of business association known as a partnership can be traced to ancient
Babylonia and
classical Greece and was used in England during the Middle Ages. - answerTrue
Corporations today outnumber unincorporated business associations. - answerfalse
All states have authorized the formation of limited liability companies - answertrue
All 50 states have adopted the Revised Uniform Partnership Act. - answerfalse
The trustees are generally not personally liable for the debts of a business trust. -
answerFalse
Because the statute of frauds does not apply expressly to a contract for the formation of
a
partnership, usually no writing is required to create the relationship. - answerTrue
A joint venture is necessarily of short duration. - answerFalse
A sole proprietorship is formed without any formality, is not a separate taxable entity, is
dissolved upon death of the owner, and has unlimited liability for the owner. -
answerTrue
The newly formed Tavin and Shane Partnership cannot commence business until it
meets its state's required minimum amount of capitalization. - answerFalse
The proportion in which partners bear losses depends upon their relative capital
contributions. - answerFalse
In all types of business entities, the owners can fully share in the management and
control of the
business. - answerFalse
Income from some types of business entities is taxed twice. - answerTrue
General partnerships are frequently used in finance, accounting, real estate, and law. -
answerTrue
,If no specific agreement exists, the partners bear losses in the same proportion in which
they
share profits. - answerTrue
The choice of the most appropriate form of business enterprise cannot be determined
without
considering the particular circumstances of the owners. - answertrue
A judicial lien against a partner's transferable interest in a partnership is known as a(n):
(A) legal aggregate.
(B) delegation of assets.
(C) charging order.
(D) assignment. - answer(C) charging order.
A partner who has no right to participate in control of the business and who has limited
liability
is a:
(A) general partner.
(B) nominal partner.
(C) secret partner.
(D) limited partner. - answer(D) limited partner.
Which of the following is NOT an advantage of a partnership?
(A) Partners' income taxes may be less than the income taxes would be on a
corporation.
(B) Each partner has limited liability.
(C) It is possible to bring together more managerial skills than in a sole proprietorship.
(D) It is possible to bring together more capital than in a sole proprietorship. - answer(B)
Each partner has limited liability.
A distinguishing characteristic of a business trust is that:
(A) the trust estate is devoted to the conduct of a business.
(B) each beneficiary must have the consent of all the other beneficiaries in order to sell
or transfer
his interest in the trust.
(C) the trustees and beneficiaries share the functions of management and control.
(D) the trust can be established with no formality. - answer(A) the trust estate is devoted
to the conduct of a bus
Which of the following is not true regarding a partnership name?
(A) The name selected may not be the same as or deceptively similar to the name of
any other
existing business.
(B) It may be a fictitious name.
(C) It may not be likely to indicate to the public that it is a corporation.
, (D) It may not be the name of any one of the partners. - answer(D) It may not be the
name of any one of the partner
Arthur, Betty, and Clara each inherit an undivided one-third of an apartment complex.
Instead of
selling it, they decide to continue to operate it for the next few years as a sideline to
their other
occupations just to see if they can earn some extra money. What are they?
(A) A partnership
(B) Co-owners only
(C) A corporation
(D) Tenants in common - answer(A) A partnership
Co-ownership of the means or instrumentality of accomplishing a single business
transaction or
a limited series of transactions ordinarily results in a:
(A) partnership.
(B) joint venture.
(C) corporation.
(D) R & D partnership. - answer(B) joint venture.
Which of the following would lack the capacity to become a partner?
(A) A business trust
(B) A retired person over 74
(C) A corporation
(D) None of these lack capacity; any of them could become a partner. - answer(D) None
of these lack capacity; any of them could become a partner.
The RUPA treats a partnership as a legal entity in all but which of the following
respects?
(A) Title to partnership property
(B) Continuity of existence
(C) Legal actions by and against the partnership
(D) Unlimited liability for partnership obligations - answer(D) Unlimited liability for
partnership obligations
In which of the following situations would the persons be partners?
(A) Aisha and Brantley jointly own shares of the capital stock of a corporation, have a
joint bank
account, and have purchased real estate as tenants in common. They share the
dividends on the
stock, the interest on the bank account, and the net proceeds from the lease of the real
estate.
(B) Aisha and Brantley buy and sell real estate continuously over a five-year period,
conducting a
business of trading in real estate. They do not consider themselves partners.
A corporation may not be a partner in a partnership. - answer false
Under the common law, a partnership is generally considered to be a legal entity rather
than an
aggregate of individuals. - answer False
Partners may elect to have the partnership not be a separate taxable entity, so that only
the
partners are taxed. - answer True
A general partnership may be formed for a charitable purpose. - answer False
Tori and Margaret agree to form a partnership. The partnership contract between Tori
and
Margaret does not have to be in writing in order to be enforceable in the courts. -
answer True
What is considered "partnership property" is determined primarily by the partners'
intentions. - answer True
Sharing of gross returns establishes a partnership. - answerFalse
In some corporations, only the shareholders are taxed; in others, both the corporation
as an entity
is taxed and the shareholders are taxed as well. - answertrue
A partner cannot assign his interest in the partnership without dissolving the
partnership. - answerfalse
Under the RUPA, no person may become a member of a partnership without the
consent of all
the partners. - answerTrue
A partnership name may be the name of all the partners, some of them or any one of
them. - answerTrue
Under the RUPA, a partnership agreement may be written or oral, but not implied. -
answerFalse
,The UPA was amended in 2016 as part of the Bring Harmony to Business Act. -
answerFalse
A limited liability company (LLC) provides limited liability to all of its owners and permits
all of
its owners to participate in management. - answertrue
The form of business association known as a partnership can be traced to ancient
Babylonia and
classical Greece and was used in England during the Middle Ages. - answerTrue
Corporations today outnumber unincorporated business associations. - answerfalse
All states have authorized the formation of limited liability companies - answertrue
All 50 states have adopted the Revised Uniform Partnership Act. - answerfalse
The trustees are generally not personally liable for the debts of a business trust. -
answerFalse
Because the statute of frauds does not apply expressly to a contract for the formation of
a
partnership, usually no writing is required to create the relationship. - answerTrue
A joint venture is necessarily of short duration. - answerFalse
A sole proprietorship is formed without any formality, is not a separate taxable entity, is
dissolved upon death of the owner, and has unlimited liability for the owner. -
answerTrue
The newly formed Tavin and Shane Partnership cannot commence business until it
meets its state's required minimum amount of capitalization. - answerFalse
The proportion in which partners bear losses depends upon their relative capital
contributions. - answerFalse
In all types of business entities, the owners can fully share in the management and
control of the
business. - answerFalse
Income from some types of business entities is taxed twice. - answerTrue
General partnerships are frequently used in finance, accounting, real estate, and law. -
answerTrue
,If no specific agreement exists, the partners bear losses in the same proportion in which
they
share profits. - answerTrue
The choice of the most appropriate form of business enterprise cannot be determined
without
considering the particular circumstances of the owners. - answertrue
A judicial lien against a partner's transferable interest in a partnership is known as a(n):
(A) legal aggregate.
(B) delegation of assets.
(C) charging order.
(D) assignment. - answer(C) charging order.
A partner who has no right to participate in control of the business and who has limited
liability
is a:
(A) general partner.
(B) nominal partner.
(C) secret partner.
(D) limited partner. - answer(D) limited partner.
Which of the following is NOT an advantage of a partnership?
(A) Partners' income taxes may be less than the income taxes would be on a
corporation.
(B) Each partner has limited liability.
(C) It is possible to bring together more managerial skills than in a sole proprietorship.
(D) It is possible to bring together more capital than in a sole proprietorship. - answer(B)
Each partner has limited liability.
A distinguishing characteristic of a business trust is that:
(A) the trust estate is devoted to the conduct of a business.
(B) each beneficiary must have the consent of all the other beneficiaries in order to sell
or transfer
his interest in the trust.
(C) the trustees and beneficiaries share the functions of management and control.
(D) the trust can be established with no formality. - answer(A) the trust estate is devoted
to the conduct of a bus
Which of the following is not true regarding a partnership name?
(A) The name selected may not be the same as or deceptively similar to the name of
any other
existing business.
(B) It may be a fictitious name.
(C) It may not be likely to indicate to the public that it is a corporation.
, (D) It may not be the name of any one of the partners. - answer(D) It may not be the
name of any one of the partner
Arthur, Betty, and Clara each inherit an undivided one-third of an apartment complex.
Instead of
selling it, they decide to continue to operate it for the next few years as a sideline to
their other
occupations just to see if they can earn some extra money. What are they?
(A) A partnership
(B) Co-owners only
(C) A corporation
(D) Tenants in common - answer(A) A partnership
Co-ownership of the means or instrumentality of accomplishing a single business
transaction or
a limited series of transactions ordinarily results in a:
(A) partnership.
(B) joint venture.
(C) corporation.
(D) R & D partnership. - answer(B) joint venture.
Which of the following would lack the capacity to become a partner?
(A) A business trust
(B) A retired person over 74
(C) A corporation
(D) None of these lack capacity; any of them could become a partner. - answer(D) None
of these lack capacity; any of them could become a partner.
The RUPA treats a partnership as a legal entity in all but which of the following
respects?
(A) Title to partnership property
(B) Continuity of existence
(C) Legal actions by and against the partnership
(D) Unlimited liability for partnership obligations - answer(D) Unlimited liability for
partnership obligations
In which of the following situations would the persons be partners?
(A) Aisha and Brantley jointly own shares of the capital stock of a corporation, have a
joint bank
account, and have purchased real estate as tenants in common. They share the
dividends on the
stock, the interest on the bank account, and the net proceeds from the lease of the real
estate.
(B) Aisha and Brantley buy and sell real estate continuously over a five-year period,
conducting a
business of trading in real estate. They do not consider themselves partners.
