Question 1

If,upon dissolution of a partnership,liabilities of the partnership are greater than the liquidated assets of the partnership,which of the following occurs?

Accepted Answer

A)  Only partners who participated in management of the business must contribute his or her share of the losses to pay creditors.
B)  Only partners who did not participate in the management of the business must contribute his or her share of the losses to pay creditors.
C)  Each partner must contribute his or her share of the losses to pay creditors.
D)  The managing partner is liable for the liabilities,but other partners are not liable.
E)  The liabilities remain unpaid because the partners are not liable.F) None of the above
G) A) and B)

Question 2

Which of the following was the ruling of the court on appeal in the case of In re Leah Beth Woskob,Debtor;Alex Woskob;Helen Woskob;the Estate of Victor Woskob v.Leah Beth Woskob,the case in the text involving a dispute regarding whether a partnership was dissolved prior to the death of one of the partners making the attempt of the other partner to buy out the deceased partner's interest untimely?

Accepted Answer

A)  That by agreement of the partners,the partnership had been dissolved prior to the death.
B)  That the exclusion of a partner from the partnership was grounds for automatic dissolution and that,on that basis,the partnership had been dissolved prior to the death of the partner at issue.
C)  That the partnership had not been dissolved at the time of the death of the partner at issue.
D)  That the insolvency of one of the partners resulted in automatic dissolution of the partnership prior to the death of the partner at issue.
E)  That the partnership was dissolved prior to the death of the partner at issue based upon lawsuits filed by third-party creditors.F) None of the above
G) A) and E)

Question 3

Which of the following is a type of partnership,if any,that does not specify the objective or duration of the partnership?

Accepted Answer

A)  An indeterminate partnership.
B)  A partnership at sufferance.
C)  A temporary partnership.
D)  A partnership at will.
E)  There is no such partnership because a partnership cannot exist unless either the objective or duration is stated.F) A) and B)
G) A) and C)

Question 4

If a partnership does not notify third parties of a dissolution,a partner can still have authority to bind the partnership.

Accepted Answer

A)  No
B)  Supposed
C)  Actual
D)  Implied
E)  TrueF) D) and E)
G) C) and E)

Question 5

Which statement is true regarding the rights of partners to a rightful dissolution of a partnership?

Accepted Answer

A)  The partners may continue the partnership upon majority vote.
B)  Rightful dissolution is by act of a partner only.
C)  All partners can demand that the partnership be wound-up but only the managing partner may participate in the wind-up.
D)  If the partners unanimously agree,they can continue the business using the partnership's name.
E)  Rightful dissolution is by act of court only.F) A) and B)
G) A) and E) D

Question 6

Dissolution of a partnership is considered complete when which of the following happens?

Accepted Answer

A)  Thirty days after any partner,by choice or by default,stops fulfilling the role of a partner to the business.
B)  Only when any partner,by choice,stops fulfilling the role of a partner to the business.
C)  When any partner,by choice or by default,stops fulfilling the role of a partner to the business.
D)  Thirty days after any partner,by default,stops fulfilling the role of a partner to the business.
E)  Only when any partner,by default,stops fulfilling the role of a partner to the business.F) C) and D)
G) B) and D)

Question 7

Limited partnerships are also known as which of the following?

Accepted Answer

A)  Special partnerships
B)  Limited liability partnerships
C)  Specific partnerships
D)  General partnerships
E)  Both limited liability partnerships and specific partnershipsF) A) and B)
G) None of the above

Question 8

Partners may not engage in a business that competes with the partnership business during the winding-up process.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true if a partner wrongfully dissolves a partnership?

Accepted Answer

A)  The partner who wrongfully dissolved the business must petition the court in order to complete the process.
B)  The partner who wrongfully dissolved the partnership can require that the business be wound up.
C)  The remaining partners must petition the court in order to complete the process.
D)  The partner who wrongfully dissolved the partnership can be held liable for damages to the remaining partners.
E)  The remaining partners must close the business.F) A) and C)
G) B) and C)

Question 10

Which of the partners can demand that the winding up process begin?

Accepted Answer

A)  Kyra or Morgan,because Cole is operating a competing business.
B)  By law,the winding up process begins thirty days after dissolution,thus no partner can demand that the winding up process begin.
C)  Only Cole.
D)  Any of the partners.
E)  Kyra or Morgan,because Cole demanded dissolution.F) C) and D)
G) A) and E)

Question 11

Which statement is true regarding the issue of Fernando's father deciding to manage the partnership?

Accepted Answer

A)  He may be involved in management;but,as a limited partner,he may not be paid additional amounts for doing so.
B)  As a limited partner,he may not be involved in management and retain limited liability.
C)  There is no effect on the partnership agreement.
D)  Before he can undertake management duties,he must get the approval of at least one half of all general and limited partners.
E)  He may be involved in all matters of management except strategic planning.F) D) and E)
G) None of the above

Question 12

Pietro and Avana have a partnership importing exotic birds from South America.Congress passes a law prohibiting the importation of birds.Does the law have any effect on the partnership?

Accepted Answer

A)  No.
B)  The partnership is automatically dissolved by operation of law.
C)  The partnership has 90 days to continue to operate.
D)  The partnership is automatically dissolved by act of court.
E)  The partnership can continue to do business because it existed before the law was passed.F) A) and D)
G) C) and D)

Question 13

Oslo and Faraya want to form a partnership.Oslo is very ill and they verbally agree that Faraya can continue the business after his death.What type of agreement should they execute in order to ensure that Faraya can keep the partnership property and carry on the business after Oslo's death?

Accepted Answer

A)  Post-death agreement.
B)  Continuation agreement.
C)  Honorable agreement.
D)  Contingent agreement.
E)  There is no such agreement.F) B) and E)
G) None of the above

Question 14

Which of the following circumstances will not dissolve a limited partnership?

Accepted Answer

A)  Written consent by the majority of all partners.
B)  The expiration of the term established in the certificate of the limited partnership.
C)  The withdrawal of the general partner.
D)  An act of court.
E)  The completion of the objective established in the certificate.F) C) and D)
G) A) and E)

Question 15

In general,members of LLCs execute an agreement at the time of the LLC's formation,however,members of limited partnerships do not.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an agreement stating that continuing partners can keep partnership property and carry on the partnership business?

Accepted Answer

A)  A continuation agreement
B)  A non-liquidation agreement
C)  A limitation agreement
D)  A proceeding agreement
E)  A forward agreementF) C) and E)
G) A) and B)

Question 17

In what order should the partnership's debts be paid?

Accepted Answer

A)  The loan to Ava,then the bank loan,then the capital to the partners.
B)  The bank loan,then the loan to Ava,then the capital to the partners.
C)  The capital to the partners,then the bank loan,then the loan to Ava.
D)  The bank loan,then the capital to the partners,then the loan to Ava.
E)  The order of payment of debts does not matter.F) C) and D)
G) B) and E) B

Question 18

In which phase during the life of a partnership are the partners involved in collecting assets and taking inventory?

Accepted Answer

A)  Performance
B)  Termination
C)  Dissolution
D)  Winding Down
E)  FormationF) None of the above
G) A) and E)

Question 19

A partnership must experience the winding-up stage,but not the dissolution stage,before the partnership may be terminated.

Accepted Answer

A) True 
 B)False

Question 20

Only officers in a limited partnership have a say in the management of the business.

Accepted Answer

A) True 
 B)False  False

Exam 37: Partnerships: Termination and Limited Partnerships

If,upon dissolution of a partnership,liabilities of the partnership are greater than the liquidated assets of the partnership,which of the following occurs?

Correct Answer
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Correct Answer
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Which of the following is a type of partnership,if any,that does not specify the objective or duration of the partnership?

Correct Answer
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If a partnership does not notify third parties of a dissolution,a partner can still have authority to bind the partnership.

Correct Answer
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Which statement is true regarding the rights of partners to a rightful dissolution of a partnership?

Correct Answer
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D

Dissolution of a partnership is considered complete when which of the following happens?

Correct Answer
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Limited partnerships are also known as which of the following?

Correct Answer
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Partners may not engage in a business that competes with the partnership business during the winding-up process.

Correct Answer
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Which of the following is true if a partner wrongfully dissolves a partnership?

Correct Answer
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Which of the partners can demand that the winding up process begin?

Correct Answer
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Which statement is true regarding the issue of Fernando's father deciding to manage the partnership?

Correct Answer
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Pietro and Avana have a partnership importing exotic birds from South America.Congress passes a law prohibiting the importation of birds.Does the law have any effect on the partnership?

Correct Answer
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Oslo and Faraya want to form a partnership.Oslo is very ill and they verbally agree that Faraya can continue the business after his death.What type of agreement should they execute in order to ensure that Faraya can keep the partnership property and carry on the business after Oslo's death?

Correct Answer
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Which of the following circumstances will not dissolve a limited partnership?

Correct Answer
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In general,members of LLCs execute an agreement at the time of the LLC's formation,however,members of limited partnerships do not.

Correct Answer
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Which of the following is an agreement stating that continuing partners can keep partnership property and carry on the partnership business?

Correct Answer
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In what order should the partnership's debts be paid?

Correct Answer
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B

In which phase during the life of a partnership are the partners involved in collecting assets and taking inventory?

Correct Answer
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A partnership must experience the winding-up stage,but not the dissolution stage,before the partnership may be terminated.

Correct Answer
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Only officers in a limited partnership have a say in the management of the business.

Correct Answer
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False

Exam 37: Partnerships: Termination and Limited Partnerships

If,upon dissolution of a partnership,liabilities of the partnership are greater than the liquidated assets of the partnership,which of the following occurs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a type of partnership,if any,that does not specify the objective or duration of the partnership?

Correct AnswerverifiedShow Answer

If a partnership does not notify third parties of a dissolution,a partner can still have authority to bind the partnership.

Correct AnswerverifiedShow Answer

Which statement is true regarding the rights of partners to a rightful dissolution of a partnership?

Correct AnswerverifiedD

Dissolution of a partnership is considered complete when which of the following happens?

Correct AnswerverifiedShow Answer

Limited partnerships are also known as which of the following?

Correct AnswerverifiedShow Answer

Partners may not engage in a business that competes with the partnership business during the winding-up process.

Correct AnswerverifiedShow Answer

Which of the following is true if a partner wrongfully dissolves a partnership?

Correct AnswerverifiedShow Answer

Which of the partners can demand that the winding up process begin?

Correct AnswerverifiedShow Answer

Which statement is true regarding the issue of Fernando's father deciding to manage the partnership?

Correct AnswerverifiedShow Answer

Pietro and Avana have a partnership importing exotic birds from South America.Congress passes a law prohibiting the importation of birds.Does the law have any effect on the partnership?

Correct AnswerverifiedShow Answer

Oslo and Faraya want to form a partnership.Oslo is very ill and they verbally agree that Faraya can continue the business after his death.What type of agreement should they execute in order to ensure that Faraya can keep the partnership property and carry on the business after Oslo's death?

Correct AnswerverifiedShow Answer

Which of the following circumstances will not dissolve a limited partnership?

Correct AnswerverifiedShow Answer

In general,members of LLCs execute an agreement at the time of the LLC's formation,however,members of limited partnerships do not.

Correct AnswerverifiedShow Answer

Which of the following is an agreement stating that continuing partners can keep partnership property and carry on the partnership business?

Correct AnswerverifiedShow Answer

In what order should the partnership's debts be paid?

Correct AnswerverifiedB

In which phase during the life of a partnership are the partners involved in collecting assets and taking inventory?

Correct AnswerverifiedShow Answer

A partnership must experience the winding-up stage,but not the dissolution stage,before the partnership may be terminated.

Correct AnswerverifiedShow Answer

Only officers in a limited partnership have a say in the management of the business.

Correct AnswerverifiedFalse

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D

Correct Answer
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B

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False