Question 1

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she​

Accepted Answer

According to the concept of limited liability, a limited partner's personal liability is limited to the amount of their investment and they cannot be held responsible for the firm's debts or obligations. However, if a limited partner participates in the management of the firm, they may lose their limited liability protection and be held responsible for the debts and obligations of the firm. Therefore, option A is the correct answer.

Question 2

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay​

Accepted Answer

In a limited partnership, creditors such as Piping, Inc. are given priority over the partners when it comes to distribution of assets upon dissolution. This is because the partners have a limited liability, whereas the creditors do not. Therefore, choice C is the correct answer.

Question 3

Fact Pattern 17-1
Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership.
-Refer to Fact Pattern 17-1.Brad's dissociation from the firm results in​

Accepted Answer

Brad's dissociation as a general partner in a limited partnership will result in the termination of Eastside's legal existence. In a limited partnership, the withdrawal or dissociation of a general partner usually leads to dissolution, and the limited partnership needs to be reconstituted or liquidated. As a result, Eastside will no longer exist legally as an entity in case of Brad's dissociation.

Question 4

Nature's Power,L.P. ,is a limited partnership dedicated to the research and development of renewable sources of energy.Nature's Power has $100,000 in declared but unpaid profits.Its creditors include Omni Credit Corporation for $5,000 and Pinto,one of Nature's Power's limited partners,also for $5,000.When Quint,one of Nature's Power's general partners,decides to retire,the other general partners vote to liquidate and dissolve the firm.The limited partners,who are not asked their opinions,want Nature's Power to continue in business and file a suit against the general partners to compel this result.Can the court order the firm to continue? If not,what is the priority of the distribution of its assets on dissolution?

Accepted Answer

The answer of Nature's Power,L.P. ,is a limited partnership dedicated...

Question 5

Gizelle,Haya,and Ivy do business as Janitorial Services,Limited Partnership.After Gizelle's relationship to the firm ends,Haya and Ivy agree not to continue the business.This is​

Accepted Answer

This situation is an example of dissolution, which is the termination of a partnership. When a partner leaves a partnership, the remaining partners may agree to dissolve the partnership and wind up its affairs.

Question 6

Darin is a limited partner in Eco Baits,a pest control service organized as a limited partnership,which cannot pay its debts.Darin is liable for the debts​

Accepted Answer

As a limited partner, Darin's liability is limited to the extent of his capital contribution to the firm. This means that he cannot be held personally liable for any debts beyond the amount of money he has invested in the partnership.

Question 7

Fact Pattern 17-1
Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership.
-Refer to Fact Pattern 17-1.Eastside is dissolved and its assets are collected,liquidated,and distributed.This results in​

Accepted Answer

When a limited partnership is dissolved, its legal existence comes to an end, resulting in the termination of Eastside's legal existence. The assets are collected, liquidated, and distributed as part of the winding-up process. The debts of the partnership are paid off, and any remaining funds are distributed to the partners according to their ownership interests. The partnership's business is no longer operational, but the partners' obligations and liabilities may continue for a limited period after the dissolution.

Question 8

Orlando is a limited partner in Port of Call Exports,a limited partnership.By participating in the firm's management,Orlando is liable for its obligations

Accepted Answer

The answer of Orlando is a limited partner in Port...

Question 9

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts​

Accepted Answer

The answer of Ben is a general partner in Cut-Rate...

Question 10

Marie.Nicole,and Olga want to form Pharma Sales,LLC (limited liability company).What should they provide in their operating agreement? If they fail to include some important operating details,what determines these details?​

Accepted Answer

The answer of Marie.Nicole,and Olga want to form Pharma Sales,LLC...

Question 11

Hugh is a limited partner and Ida is a general partner in HI Volume,a limited partnership.Joy is one of HI Volume's creditors.On HI Volume's dissolution,the party whose rights have the first priority to the firm's assets is​

Accepted Answer

In a limited partnership, the general partner(s) (in this case, Ida) typically have unlimited liability and are responsible for the partnership's debts and obligations. As a creditor of HI Volume, Joy would have the first priority to the firm's assets upon dissolution, ahead of both the general and limited partners. Hugh's and Ida's rights to the firm's assets would only come into play after all creditors (like Joy) have been paid off. Therefore, the correct answer is D.

Question 12

Fact Pattern 17-1
Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership.
-Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in​

Accepted Answer

Carlos's assignment of his interest in Eastside to Good Credit Corporation does not affect the existence of Eastside as a legal entity. In a limited partnership, the partnership agreement should specify the transferability of a limited partner's interest. The transfer of the interest does not affect the partnership's legal existence or the continuity of the partnership's business. The transfer only changes the ownership of the interest, and the limited partner's rights and duties associated with that interest.

Quiz 17: Limited Liability Business Forms

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she​

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay​

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Brad's dissociation from the firm results in​

Gizelle,Haya,and Ivy do business as Janitorial Services,Limited Partnership.After Gizelle's relationship to the firm ends,Haya and Ivy agree not to continue the business.This is​

Darin is a limited partner in Eco Baits,a pest control service organized as a limited partnership,which cannot pay its debts.Darin is liable for the debts​

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Eastside is dissolved and its assets are collected,liquidated,and distributed.This results in​

Orlando is a limited partner in Port of Call Exports,a limited partnership.By participating in the firm's management,Orlando is liable for its obligations

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts​

Marie.Nicole,and Olga want to form Pharma Sales,LLC (limited liability company).What should they provide in their operating agreement? If they fail to include some important operating details,what determines these details?​

Hugh is a limited partner and Ida is a general partner in HI Volume,a limited partnership.Joy is one of HI Volume's creditors.On HI Volume's dissolution,the party whose rights have the first priority to the firm's assets is​

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in​

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Brad's dissociation from the firm results in

Gizelle,Haya,and Ivy do business as Janitorial Services,Limited Partnership.After Gizelle's relationship to the firm ends,Haya and Ivy agree not to continue the business.This is

Darin is a limited partner in Eco Baits,a pest control service organized as a limited partnership,which cannot pay its debts.Darin is liable for the debts

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Eastside is dissolved and its assets are collected,liquidated,and distributed.This results in

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts

Marie.Nicole,and Olga want to form Pharma Sales,LLC (limited liability company).What should they provide in their operating agreement? If they fail to include some important operating details,what determines these details?

Hugh is a limited partner and Ida is a general partner in HI Volume,a limited partnership.Joy is one of HI Volume's creditors.On HI Volume's dissolution,the party whose rights have the first priority to the firm's assets is

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in