Question 1

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Accepted Answer

A)   ​access in proportion to their participation in management of the firm.
B)   ​access to the parts that directly relate to their capital contributions.
C)   ​no access.
D)   ​complete access.E) B) and D)
F) A) and C)

Question 2

Chet is a partner in Diligent Accounting Service. Chet can inspect Diligent's books and records

Accepted Answer

A)   ​in their entirety.
B)   ​only as the firm's management permits.
C)   ​only for a reasonable purpose.
D)   ​only in relation to Chet's capital contribution.E) A) and C)
F) B) and C)

Question 3

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

Accepted Answer

A) True 
 B)False

Question 4

The intent to associate is irrelevant in terms of the elements of a partnership.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)   ​be filed in the appropriate state office.
B)   ​be in writing.
C)   ​be signed by a notary public.
D)   ​not involve a third party.E) None of the above
F) All of the above

Question 6

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?

Accepted Answer

On the dissolution and winding up of a p...

Question 7

Emma is one of three partners in Fast Work, a commercial janitorial service. With respect to her interest in the firm, when she dies, her heirs are most likely entitled to

Accepted Answer

A)   ​nothing.
B)   ​a payout of her capital contribution without more.
C)   ​the buyout price paid by the firm for the interest.
D)   ​one-third of the value of the interest.E) B) and C)
F) A) and D)

Question 8

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

Accepted Answer

A)   ​entitled to compensation in proportion to her effect on the business.
B)   ​entitled to compensation in proportion to her effort.
C)   ​entitled to compensation in proportion to her capital contribution.
D)   ​not entitled to compensation.E) A) and D)
F) All of the above

Question 9

A partner's devoting time, energy, and skill to partnership business is a compensable service.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosa is

Accepted Answer

A)   ​not liable.
B)   ​only liable to the amount of her capital contribution.
C)   ​only liable in proportion to the number of partners in the firm.
D)   ​personally liable to the full extent.E) A) and B)
F) A) and D)

Question 12

A partner may not have the right to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Exam 37: All Forms of Partnerships

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

Correct Answer
verified

Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosa is

Correct Answer
verified

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Correct Answer
verified

Chet is a partner in Diligent Accounting Service. Chet can inspect Diligent's books and records

Correct Answer
verified

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

Correct Answer
verified

The intent to associate is irrelevant in terms of the elements of a partnership.

Correct Answer
verified

A partner may not have the right to dissociate from the partnership.

Correct Answer
verified

A partner's devoting time, energy, and skill to partnership business is a compensable service.

Correct Answer
verified

Correct Answer
verified
On the dissolution and winding up of a p...
View Answer

Emma is one of three partners in Fast Work, a commercial janitorial service. With respect to her interest in the firm, when she dies, her heirs are most likely entitled to

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 37: All Forms of Partnerships

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

Correct AnswerverifiedShow Answer

Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosa is

Correct AnswerverifiedShow Answer

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Correct AnswerverifiedShow Answer

Chet is a partner in Diligent Accounting Service. Chet can inspect Diligent's books and records

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The intent to associate is irrelevant in terms of the elements of a partnership.

Correct AnswerverifiedShow Answer

A partner may not have the right to dissociate from the partnership.

Correct AnswerverifiedShow Answer

A partner's devoting time, energy, and skill to partnership business is a compensable service.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOn the dissolution and winding up of a p...View AnswerShow Answer

Emma is one of three partners in Fast Work, a commercial janitorial service. With respect to her interest in the firm, when she dies, her heirs are most likely entitled to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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
On the dissolution and winding up of a p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified