Question: Which of the following is true about limited partners?
Answer Choices: A. No right to manage, limited liability, is agent
B. Limited management rights, limited liability, not agent
C. No right to manage, limited liability, not agent
D. Limited management rights, limited liability, is agent
Answer: C. No right to manage, limited liability, not agent
Question: Are Shay and Yolanda liable for Tomlin’s embezzlement in the partnership?
Answer Choices: A. Yes, due to negligence per se
B. Yes, partners are liable for torts by other partners
C. Liable only by profit percentage
D. Liable only by loss percentage
E. No, only Tomlin is responsible
Answer: B. Yes, partners are liable for torts by other partners
Question: The term ___ is associated with a partner leaving the business.
Answer Choices: A. Resolution
B. Dissolution
C. Winding up
D. Removal
E. Transforming
Answer: B. Dissolution
Question: Which of the following statements is false regarding partnership property rights?
Answer Choices: A. Brought-in property is partnership property
B. Acquired property is partnership property
C. Purchased property in a partner’s name is partnership property
D. A partner may use partnership property for personal debt
E. Each partner has right to possess partnership property
Answer: D. A partner may use partnership property for personal debt
Question: Which of the following is true regarding a written partnership agreement?
Answer Choices: A. Should be created to protect partners in court
B. Must be created to gain partnership shield
C. Required by statute of frauds
D. Required by parol evidence rule
E. Required by UPA
Answer: A. Should be created to protect partners in court
Question: Does Cameron have authority to sign an agreement without other partners’ signatures?
Answer Choices: A. Yes, implied authority covers such actions
B. Yes, actual authority applies regardless
C. No, all partners must sign
D. Yes, implied authority covers all subjects and amounts
E. No, unless the agreement allows only Cameron to do so
Answer: A. Yes, implied authority covers such actions
Question: Partners should not engage in business that ___ with the partnership.
Answer Choices: A. Competes
B. Owes the partnership money
C. Sells different goods or services
D. Might one day be a partner
E. Owes money to the IRS
Answer: A. Competes
Question: If a partner pays the entire judgment for a tort, others have no obligation to indemnify.
Answer Choices: A. True
B. False
Answer: B. False
Question: What must be signed and filed for limited liability in a limited partnership?
Answer Choices: A. Articles of partnership incorporation
B. Liability insurance
C. Certificate of intent
D. Certificate of Limited Partnership
E. No formal requirement
Answer: D. Certificate of Limited Partnership
Question: Almost any individual or group of people can serve as a partner.
Answer Choices: A. True
B. False
Answer: A. True
Question: In a limited partnership, the ___ manages the business.
Answer Choices: A. General partner
B. Managing partner
C. Limited partner
D. Manager
E. President
Answer: A. General partner
Question: Is Andrew entitled to inspect the books of the partnership?
Answer Choices: A. Only if he is the managing partner
B. Only if he can establish fraud
C. Only if the articles of partnership gave him that right
D. Only if the articles gave him the right or the other partners agree
E. Yes, Andrew is entitled to inspect the books
Answer: E. Yes, Andrew is entitled to inspect the books
Question: Will a court dismiss a suit concerning the existence or terms of a partnership if there is no written agreement?
Answer Choices: A. No, informal documentation may be used
B. No, oral testimony is enough
C. Yes, statute of frauds requires it
D. No, court recognizes quasi-partnership
E. Yes, written agreement is required
Answer: A. No, informal documentation may be used
Question: During the ___ stage, partners settle business matters.
Answer Choices: A. Formation
B. Performance
C. Dissolution
D. Winding up
E. Termination
Answer: D. Winding up
Question: A limited partnership is an agreement between:
Answer Choices: A. One general and one limited partner
B. One general and two limited partners
C. Two general and one limited partner
D. Two general and two limited partners
E. Number set by state statute
Answer: A. One general and one limited partner
Question: Which act governs limited partnerships?
Answer Choices: A. Revised Uniform Limited Partnership Act
B. Limited Liability Partnership Act
C. Special Liability Partnership Act
D. Uniform Organization of Partners Act
E. Limited Partnership Act of 2010
Answer: A. Revised Uniform Limited Partnership Act
Question: Can a creditor seize partnership property to satisfy a personal debt of a partner?
Answer Choices: A. Yes, any partnership property
B. Yes, with 30-day notice
C. Yes, with 60-day notice
D. Yes, if property is on business site
E. No, partnership property cannot be seized
Answer: E. No, partnership property cannot be seized