Question 1

Which of the following is true of express partnerships?

Accepted Answer

A)  They must be created in writing.
B)  They are limited to a direct association of human beings.
C)  The name must be registered if it is fictitious.
D)  They are created unintentionally.
E)  A partnership agreement is necessary for creation.F) None of the above
G) A) and E)

Question 2

Partnerships "at will" are not covered by the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 3

Differentiate between the entity theory and the aggregate theory.How did the common law theory and the mercantile theory of law treat partnerships with respect to legal entity?

Accepted Answer

A legal entity is a person or a group th...

Question 4

Michelle bakes cakes during her vacations and sells them to people in her neighborhood.Her friend Diana visits her during the vacation and helps her out in baking.Michelle knows that baking is a lot of work,and insists on paying Diana for helping her.Diana picks up the techniques of baking quickly and soon begins visiting Michelle daily,to help her bake.She begins looking for new customers for cakes and,on Michelle's insistence,they start sharing the profits.Under this case,Michelle and Diana have an) _____ partnership.

Accepted Answer

A)  express
B)  lingering
C)  implied
D)  willful
E)  estoppelF) C) and D)
G) None of the above

Question 5

A partnership intentionally created and recognized,orally or in writing is known as an) _____ partnership.

Accepted Answer

A)  estoppel
B)  agency
C)  implied
D)  apparent
E)  expressF) A) and B)
G) A) and E)

Question 6

If the business cannot be performed within one year from the time that the agreement is entered into,the partnership agreement should be in writing to avoid invalidation under the:

Accepted Answer

A)  Statute of Estoppel.
B)  Statute of Frauds.
C)  Uniform Partnership Act.
D)  Statute of Co-ownership.
E)  National Conference of Commissioners and Uniform Laws.F) A) and C)
G) B) and E)

Question 7

Under the common-law theory,a partnership was:

Accepted Answer

A)  a legal entity.
B)  a common name for an aggregate of individuals.
C)  a group that the law recognized as having legal rights separate from that of the partners.
D)  a group that had the right to own and dispose of property independent of its members.
E)  an entity that had the right to sue and be sued.F) B) and D)
G) B) and E)

Question 8

A corporation can never be a partner in a partnership.

Accepted Answer

A) True 
 B)False  False

Question 9

All the states of the U.S.have now adopted the Revised Uniform Partnership Act RUPA)as promulgated in 1997.

Accepted Answer

A) True 
 B)False

Question 10

The fictitious names statutes in most states of US require that anyone doing business under a name other than his real name register the name.

Accepted Answer

A) True 
 B)False  True

Question 11

Which of the following statements is true of partnerships?

Accepted Answer

A)  Partnership is limited to indirect association between human beings.
B)  Family members cannot be partners.
C)  Partnership cannot constitute an association between other entities.
D)  Partnerships between parents and minor children are lawful.
E)  Partnerships must be created by written agreements.F) A) and B)
G) None of the above

Question 12

Which of the following is most likely to be considered a partnership?

Accepted Answer

A)  GoodHomes,a charitable organization formed by Ron and Ben,who share ownership.
B)  Wyler Corporation,a tinned food manufacturing organization,owned by 40 individuals but managed by Emily and Emma Wyler.
C)  Beautiful You,a small cosmetics retail shop,owned and managed by Delores Young.
D)  Scissors,a salon for women,co-owned and managed jointly by Wanda and Ginny,who share profits equally.
E)  Bright Red,a non-profit organization concerned with helping the elderly.F) A) and E)
G) A) and C) D

Question 13

A _____ is the association of two or more people carrying on a business as co-owners for profit.

Accepted Answer

A)  limited liability company
B)  trust
C)  partnership
D)  proprietorship
E)  agency relationshipF) A) and C)
G) A) and B)

Question 14

What are the various terms that a partnership agreement or contract should clearly set forth?

Accepted Answer

The partnership contract should set fort...

Question 15

It is possible to become someone's partner without intending to or even realizing that partnership has been created.

Accepted Answer

A) True 
 B)False

Question 16

Unlike the Revised Uniform Partnership Act RUPA),the Uniform Partnership Act UPA)does not permit partnerships to form among anyone apart from natural persons.

Accepted Answer

A) True 
 B)False

Question 17

Partnerships are not taxable entities and so they do not pay income taxes.

Accepted Answer

A) True 
 B)False

Question 18

A partnership may or may not have a partnership agreement as long as the tests of partnership are met.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a necessary condition for a partnership by estoppel?

Accepted Answer

A)  The assent of both parties in the partnership
B)  A representation to a third party that there is in fact a partnership
C)  The reduction of the partnership agreement in writing
D)  The sharing of profits between both partners
E)  The sharing of ownership equally among all partiesF) B) and D)
G) A) and E)

Question 20

Non-registration of the partnership name will violate the assumed or fictitious name statutes of most states.

Accepted Answer

A) True 
 B)False

Exam 18: Partnerships: General Characteristics and Formation

Which of the following is true of express partnerships?

Correct Answer
verified

Partnerships "at will" are not covered by the Statute of Frauds.

Correct Answer
verified

Differentiate between the entity theory and the aggregate theory.How did the common law theory and the mercantile theory of law treat partnerships with respect to legal entity?

Correct Answer
verified
A legal entity is a person or a group th...
View Answer

Correct Answer
verified

A partnership intentionally created and recognized,orally or in writing is known as an) _____ partnership.

Correct Answer
verified

If the business cannot be performed within one year from the time that the agreement is entered into,the partnership agreement should be in writing to avoid invalidation under the:

Correct Answer
verified

Under the common-law theory,a partnership was:

Correct Answer
verified

A corporation can never be a partner in a partnership.

Correct Answer
verified
False

All the states of the U.S.have now adopted the Revised Uniform Partnership Act RUPA)as promulgated in 1997.

Correct Answer
verified

The fictitious names statutes in most states of US require that anyone doing business under a name other than his real name register the name.

Correct Answer
verified
True

Which of the following statements is true of partnerships?

Correct Answer
verified

Which of the following is most likely to be considered a partnership?

Correct Answer
verified
D

A _____ is the association of two or more people carrying on a business as co-owners for profit.

Correct Answer
verified

What are the various terms that a partnership agreement or contract should clearly set forth?

Correct Answer
verified
The partnership contract should set fort...
View Answer

It is possible to become someone's partner without intending to or even realizing that partnership has been created.

Correct Answer
verified

Unlike the Revised Uniform Partnership Act RUPA),the Uniform Partnership Act UPA)does not permit partnerships to form among anyone apart from natural persons.

Correct Answer
verified

Partnerships are not taxable entities and so they do not pay income taxes.

Correct Answer
verified

A partnership may or may not have a partnership agreement as long as the tests of partnership are met.

Correct Answer
verified

Which of the following is a necessary condition for a partnership by estoppel?

Correct Answer
verified

Non-registration of the partnership name will violate the assumed or fictitious name statutes of most states.

Correct Answer
verified

Exam 18: Partnerships: General Characteristics and Formation

Which of the following is true of express partnerships?

Correct AnswerverifiedShow Answer

Partnerships "at will" are not covered by the Statute of Frauds.

Correct AnswerverifiedShow Answer

Differentiate between the entity theory and the aggregate theory.How did the common law theory and the mercantile theory of law treat partnerships with respect to legal entity?

Correct AnswerverifiedA legal entity is a person or a group th...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A partnership intentionally created and recognized,orally or in writing is known as an) _____ partnership.

Correct AnswerverifiedShow Answer

If the business cannot be performed within one year from the time that the agreement is entered into,the partnership agreement should be in writing to avoid invalidation under the:

Correct AnswerverifiedShow Answer

Under the common-law theory,a partnership was:

Correct AnswerverifiedShow Answer

A corporation can never be a partner in a partnership.

Correct AnswerverifiedFalse

All the states of the U.S.have now adopted the Revised Uniform Partnership Act RUPA)as promulgated in 1997.

Correct AnswerverifiedShow Answer

The fictitious names statutes in most states of US require that anyone doing business under a name other than his real name register the name.

Correct AnswerverifiedTrue

Which of the following statements is true of partnerships?

Correct AnswerverifiedShow Answer

Which of the following is most likely to be considered a partnership?

Correct AnswerverifiedD

A _____ is the association of two or more people carrying on a business as co-owners for profit.

Correct AnswerverifiedShow Answer

What are the various terms that a partnership agreement or contract should clearly set forth?

Correct AnswerverifiedThe partnership contract should set fort...View AnswerShow Answer

It is possible to become someone's partner without intending to or even realizing that partnership has been created.

Correct AnswerverifiedShow Answer

Unlike the Revised Uniform Partnership Act RUPA),the Uniform Partnership Act UPA)does not permit partnerships to form among anyone apart from natural persons.

Correct AnswerverifiedShow Answer

Partnerships are not taxable entities and so they do not pay income taxes.

Correct AnswerverifiedShow Answer

A partnership may or may not have a partnership agreement as long as the tests of partnership are met.

Correct AnswerverifiedShow Answer

Which of the following is a necessary condition for a partnership by estoppel?

Correct AnswerverifiedShow Answer

Non-registration of the partnership name will violate the assumed or fictitious name statutes of most states.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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A legal entity is a person or a group th...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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The partnership contract should set fort...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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