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Exam 31: All Forms of Partnership

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Question 31

Multiple Choice

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Sweet Selections,a general partnership,operates as a gift shop. Sweet Selections has ten partners. Jill and Amy each have a 25 percent interest in the partnership. All the other members have a 10 percent interest. With respect to management decisions

A) a majority of the partners must agree.
B) both Jill and Amy must agree.
C) the senior partner decides.
D) 30 percent of the partners must agree.

E) A) and C)
F) A) and D)

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Question 32

True/False

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In a limited partnership,a general partner's dissociation from the firm normally will lead to dissolution unless all partners agree to continue the business.

A) True
B) False

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Question 33

Multiple Choice

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Colin,Demi,and Erin agree to be partners in Fajita Pizza,splitting the profits equally. Colin contributes 65 percent of the capital. When Fajita Pizza is dissolved,its liabilities are greater than its assets. The losses are paid by

Fresco and Garcia form a partnership-HVAC Pros. Garcia's capital contribution is $10,000,and Fresco's is $15,000. The partnership agreement provides that profits are to be shared,with 40 percent for Garcia and 60 percent for Fresco. Later,Garcia makes a $10,000 loan to the partnership when it needs working capital. When the partnership is dissolved,its assets are $50,000,and its debts are $8,000. How should the assets be distributed?

The partners decide to dissolve Equity Lending. Duke collects and distributes the firm's assets. This results in

In a general partnership,the senior partner controls decisions on ordinary matters connected with partnership business.

A partner has a duty to devote time,skill and energy on behalf of the partnership business.

Blythe and Cali do business as Diamond Investments. In acting on the firm's behalf,Blythe makes an honest error in overestimating the value of a particular stock purchase. To her firm,Blythe is

In a general partnership,the acts of one partner in the ordinary course of business do not subject the other partners to personal liability.

A partnership is forced to terminate every time a partner dissociates from the firm.

Unlike most agents,each partner in a partnership has an ownership interest in the business.

A partner always has the power but he or she may not have the right to dissociate from the partnership.

Sara and Tony agree while talking on the phone to form a partnership-United Caretakers-to enter into the business of real property management. To be enforceable under the Statute of Frauds,their agreement must

Nora and Owen do business as Profit & Property,a real estate investment partnership. In acting on the firm's behalf in a deal with Quaint Village Mall,Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm,Nora is liable for

Smith & Jones,Accountants,is a limited liability partnership (LLP) . The major features of an LLP are that it limits the personal liability of the partners and

Quisa and Reilly are partners in Sport Bikes,which rents and sells bikes,bike accessories,and related gear. Quisa manages the business. Unless the partnership agreement states otherwise,Quisa is

Nell is considering forms of business organization for Optic Center,a medical eye clinic. An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for

Bo and Clancy decide to do business as Marketing & Promotion Services. To be a partnership,this association can result from an agreement that is

A partnership is a pass-through entity and a taxpaying entity.

Brad and Carolyn are partners in Doctors for Children,a medical clinic. Brad's dissociation from the firm results in