Question 1

The Revised Uniform Partnership Act states that a partnership will be dissolved if a partner leaves.

Accepted Answer

A) True 
 B)False

Question 2

A public corporation is the easiest and least expensive way to create a business organization.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following holds true for a general partnership if the partners have not entered into a written agreement?

Accepted Answer

A)   Partners are required to contribute equal capital to the partnership and bear equal responsibilities.
B)   Individual partners are exempted from federal income taxes because those taxes are paid by the partnership.
C)   Partners are required to file a partnership return with the Internal Revenue Service that shows the partnership's profit or loss.
D)   The partnership is double-taxed because both the partnership and the individual partners pay taxes.E) B) and C)
F) None of the above

Question 4

Which of the following is prevented by dissolution after partners have initiated termination proceedings?

Accepted Answer

A)   finalizing the accounting records
B)   paying the outstanding debts of the partnership
C)   transacting any new business
D)   dividing any profits between the partnersE) A) and B)
F) C) and D)

Question 5

A is the easiest and least expensive way to create a business organization.

Accepted Answer

A)   sole proprietorship
B)   general partnership
C)   public corporation
D)   limited liability companyE) B) and C)
F) A) and B)

Question 6

refers to the process of completing all unfinished transactions, paying off outstanding debts, distributing assets, and dividing remaining profits when a partnership is on its "deathbed."

Accepted Answer

A)   Winding-up
B)   Liquidation
C)   Litigation
D)   Rolling-overE) A) and B)
F) None of the above

Question 7

Which section of the general partnership agreement form contains information about a partner's right to demand property?

Accepted Answer

A)   Article I
B)   Article II
C)   Article III
D)   Article IVE) B) and C)
F) B) and D)

Question 8

A partnership does not have perpetual existence and can "die" when the partnership agreement expires.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a similarity between a public corporation and a limited liability company?

Accepted Answer

A)   Both have a limitation on the number of owners.
B)   Both allow owners control over daily management decisions.
C)   Both limit liability of owners to loss of capital contribution.
D)   Both have their profits taxed as income to corporation and again as income to owners when distributed as dividends.E) C) and D)
F) A) and D)

Question 10

Which of the following is a characteristic of a sole proprietorship?

Accepted Answer

A)   Ownership interests are nontransferable.
B)   Profits are taxed as income to the organization and again as income to owners.
C)   The lifetime of the organization is unlimited.
D)   Liability of the owners is limited to loss of capital contribution.E) None of the above
F) A) and C)

Question 11

The is the party in a franchise relationship who owns a trade name or trademark.

Accepted Answer

A)   franchisee
B)   franchisor
C)   delegator
D)   delegateeE) A) and D)
F) A) and C)

Question 12

Which of the following statements is true under the 2001 revision to the Revised Uniform Limited Partnership Act (RULPA) ?

Accepted Answer

A)   A limited partner cannot be held liable for the partnership debts unless he or she participates in the management of the limited partnership.
B)   A limited partner can be held liable for the partnership debts under any circumstance.
C)   A limited partner can be held liable for the partnership debts if he or she receives profits.
D)   A limited partner cannot be held liable for the partnership debts even if he or she participates in the management and control of the limited partnership.E) A) and B)
F) C) and D)

Question 13

In the absence of a written agreement in a partnership, partners are required to share profits equally.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a disadvantage of the sole proprietorship form of business organization?

Accepted Answer

A)   The proprietor is personally liable for all losses incurred by the proprietorship.
B)   The proprietor does not get to retain all profits of the business.
C)   The proprietorship suffers double taxation.
D)   Establishing the proprietorship requires more forms and other legal formalities than any other form of organization.E) A) and D)
F) A) and C)

Question 15

If management should decide to expand its business internationally, it should determine the optimal level of global involvement by answering all but which of the following questions?

Accepted Answer

A)   Should the firm directly export to another firm in the target country, or should it hire an export trading company to market its products?
B)   Should the firm license the use of it products under an international licensing agreement?
C)   Should the firm go international by joint venture, merger, or acquisition?
D)   Should the firm exercise its power of condemnation, and if so, to what extent?E) B) and D)
F) B) and C)

Question 16

A partnership in which management responsibilities and profits are divided usually equally among the partners, and all partners have unlimited personal liability for the partnership's debts is called a(n)  partnership.

Accepted Answer

A)   nominal
B)   active
C)   equal
D)   generalE) A) and B)
F) None of the above

Question 17

Which of the following is an incorrect statement regarding a joint stock company?

Accepted Answer

A)   Members of a joint stock company own shares that are transferable.
B)   The joint stock company is treated as a partnership.
C)   In a joint stock company, all goods are held in the name of the partners.
D)   A joint stock company is an S corporation.E) C) and D)
F) A) and D)

Question 18

Which of the following is not a specialized form of business association?

Accepted Answer

A)   joint stock company
B)   syndicate
C)   joint venture
D)   racketE) None of the above
F) A) and B)

Question 19

A commercial agreement between a party that owns a trade name or trademark and a party that sells or distributes goods or services using that trade name or trademark is known as a .

Accepted Answer

A)   joint venture
B)   joint stock company
C)   franchise relationship
D)   syndicateE) C) and D)
F) A) and B)

Question 20

When winding-up is complete, a partnership's legal existence is terminated.

Accepted Answer

A) True 
 B)False

Exam 16: Law and Business Associations I

Which of the following holds true for a general partnership if the partners have not entered into a written agreement?

Correct AnswerverifiedShow Answer

Which of the following is a similarity between a public corporation and a limited liability company?

Correct AnswerverifiedShow Answer

A partnership in which management responsibilities and profits are divided usually equally among the partners, and all partners have unlimited personal liability for the partnership's debts is called a(n) partnership.

Correct AnswerverifiedShow Answer

A is the easiest and least expensive way to create a business organization.

Correct AnswerverifiedShow Answer

refers to the process of completing all unfinished transactions, paying off outstanding debts, distributing assets, and dividing remaining profits when a partnership is on its "deathbed."

Correct AnswerverifiedShow Answer

A commercial agreement between a party that owns a trade name or trademark and a party that sells or distributes goods or services using that trade name or trademark is known as a .

Correct AnswerverifiedShow Answer

Which of the following is prevented by dissolution after partners have initiated termination proceedings?

Correct AnswerverifiedShow Answer

A partnership does not have perpetual existence and can "die" when the partnership agreement expires.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of the sole proprietorship form of business organization?

Correct AnswerverifiedShow Answer

Which of the following statements is true under the 2001 revision to the Revised Uniform Limited Partnership Act (RULPA) ?

Correct AnswerverifiedShow Answer

The is the party in a franchise relationship who owns a trade name or trademark.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a sole proprietorship?

Correct AnswerverifiedShow Answer

Which of the following is not a specialized form of business association?

Correct AnswerverifiedShow Answer

In the absence of a written agreement in a partnership, partners are required to share profits equally.

Correct AnswerverifiedShow Answer

A public corporation is the easiest and least expensive way to create a business organization.

Correct AnswerverifiedShow Answer

Which section of the general partnership agreement form contains information about a partner's right to demand property?

Correct AnswerverifiedShow Answer

Which of the following is an incorrect statement regarding a joint stock company?

Correct AnswerverifiedShow Answer

The Revised Uniform Partnership Act states that a partnership will be dissolved if a partner leaves.

Correct AnswerverifiedShow Answer

If management should decide to expand its business internationally, it should determine the optimal level of global involvement by answering all but which of the following questions?

Correct AnswerverifiedShow Answer

When winding-up is complete, a partnership's legal existence is terminated.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified