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Ch 26 - Forms of Business Ownership Flashcards | StudBud
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Ch 26 - Forms of Business Ownership
Ch 26 - Forms of Business Ownership
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A #law quiz
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Questions
24
Answers
1
A partner who invests more, brings in more business, or works harder or longer is entitled to
extra pay
a larger percentage of the business
a larger share of the profits
no extra compensation unless all partners agree
2
Which of the following statements regarding a limited partnership is
not
true?
none of these
one or more partners may have limited liability
one partner must be general with unlimited liability
one partner must be general with limited liability
3
Unlimited personal responsibility is only possible in a sole proprietorship form of business
true
false
4
Of the three forms, the simplest, most flexible, and easiest to start is sole proprietorship
false
true
5
Under the Uniform Partnership Act unanimous agreement is required for decisions to
make a change to partnership agreement
all of these
assign partnership property to creditors
confess judgment
6
Limited partner’s liability can't exceed amount the partner has invested in the business if
does not participate in management
participated in management
shares profits and losses equally
none of these
7
When one partner receives a complaint, all partners are deemed to have received the notice
false
true
8
The partnership & all partners are liable when a partner commits a tort acting within scope
false
true
9
If 2 or more persons combine their resources & skills to do one complex project, they create a
secret partnership
corporation
joint venture
limited partnership
10
The normal sequence of steps in ending a partnership is
termination, dissolution, distribution
dissolution, winding-up period, termination
none of these
bankruptcy, liquidation, distribution
11
Each partner agrees to assume full liability and manages the firm. This type of partnership is
limited partnership
general partnership
legal partnership
special partnership
12
Which of the following statements regarding a corporation is
not
true?
all are true
attract large sums of capital due to increased liabiltiy
attracts superior workers because of better salaries
existence is distinct and separate from owners
13
Which type of business organization offers perpetual life as well as limited liability?
unlimited partnership
general partnership
sole proprietorship
corporation
14
Which of the following is
not
within the authority of a general partner acting within scope?
receive payments to the firm
all are within authority
make binding contracts
in a non-trading partnership, borrow money
15
No partner can use partnership property for personal purposes unless all other partners consent
true
false
16
Which of the following forms of business organization is an artificial person?
all of these
partnership
corporation
sole proprietorship
17
Limited partners do
not
usually share in the managerial control of the business
true
false
18
Tenancy in partnership- each partner is a co-owner of partnership property & n
ot
the sole owner
false
true
19
In a limited partnership every partner is liable only to the extent of their investment
false
true
20
A creditor of a partner can reach specific partnership property to satisfy the debt owed
true
false
21
A minor entering into a partnership agreement
none of these
can only function as a limited partner
cannot plead minority as a defense if sued
retains all rights and privileges of a minor
22
Which of the following hold themselves out as partners, but are
not
actual partners?
silent partner
dormant partner
secret partner
nominal partner
23
The most often used form of business organizations is the
non-trading partnership
trading partnership
sole proprietorship
corporation
24
A limited partner may be employed as an independent contractor for the limited partnership
true
false
