Question 1

Venture Capital,LP,is a limited partnership.A Venture limited partner loses his or her limited liability if he or she

Accepted Answer

A venture limited partner loses his or her limited liability if he or she acts as the firm's manager.

Question 2

Rick and Sandy are limited partners in Total Profit Enterprises,a limited partnership.To avoid personal liability for partnership obligations,they must not

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Limited partners are not allowed to participate in the management of the partnership to avoid personal liability for the partnership's obligations. Choices A and B are incorrect because limited partners are allowed to acquire an interest or contribute property to the partnership. Choice C is not necessarily true and could depend on the terms of the partnership agreement.

Question 3

Gallop Western Ranch is a family limited liability partnership (FLLP).In an FLLP,all of the partners must be

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The answer of Gallop Western Ranch is a family limited...

Question 4

Energy Unlimited,LP,is a limited partnership to which its partners,including Fink,have contributed capital.Energy's creditors include Graves Engineering,Inc.On Energy's dissolution,its assets will be distributed to pay

Accepted Answer

On dissolution, creditors like Graves Engineering, Inc. have priority in receiving payment from the partnership's assets before any distribution is made to partners like Fink. Therefore, Graves would be paid first, and Fink would receive any remaining portion of the assets.

Question 5

Dunn and Etta are limited partners in Fancee Fashion Stores,a limited partnership.In terms of the firm's books,Dunn and Etta are entitled to

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The answer of Dunn and Etta are limited partners in...

Question 6

Bret is a general partner in Capitol Realty,LLLP,a limited liability limited partnership,which cannot pay its debts.Bret is personally liable for the debts

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The answer of Bret is a general partner in Capitol...

Question 7

Lucy is a limited partner in Metro Contractors,a limited partnership,which cannot pay its debts.Lucy is personally liable for the debts

Accepted Answer

As a limited partner, Lucy's liability is limited to the extent of her capital contribution. This means that she is not personally liable for the debts of the partnership beyond her initial investment. Therefore, choice C is the correct answer. Choice A is incorrect because liability in a limited partnership is not proportional to the number of partners. Choice B is incorrect because limited partners are not usually held personally liable for the debts of the partnership. Choice D is incorrect because if Lucy were a general partner, then she would be personally liable for the full extent of the partnership's debts.

Question 8

Fern and Gray want to form a limited partnership to manage two restaurants: Café Latte and Deli Delite.In most states,a limited partnership will be created when

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The answer of Fern and Gray want to form a...

Question 9

Jack and Kyra are partners in Law Firm,LLP,a limited liability partnership.Jack supervises Kyra,who negligently fails to appear in court on behalf of Milo,a client.Liability to Milo rests with

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The answer of Jack and Kyra are partners in Law...

Question 10

Sally and Tom decide to go into business,selling discounted merchandise through their Web site "e-Buy." They sign a partnership agreement that requires Sally to contribute $12,000 and Tom to contribute $8,000 in capital to start the firm.The agreement also states that only Sally will have the authority to bind the partnership in deals with third parties,but the agreement says nothing about the management of the firm or a division of profits.Without Sally's knowledge,Tom tells United Computer Products,Inc.,that he represents the firm and signs a contract with United to buy hard drives for resale on e-Buy.In the first year,e-Buy makes a profit of $50,000.What are the partners' rights with respect to the management of the firm? Is the partnership bound to the contract with United? Do the partners split the first year's profits? If so,how much is each entitled to?

Accepted Answer

The answer of Sally and Tom decide to go into...

Question 11

Connie,Drew,and Ellen are the general partners of Foreign Auto Repair,a limited partnership.Connie dies.The partnership can

Accepted Answer

In a limited partnership, the general partners have management and control over the partnership, while limited partners do not. If one of the general partners dies, the partnership agreement should contain provisions for the continuation of the partnership. In this case, if the partnership agreement allows it, Drew and Ellen can continue as general partners with the consent of both parties. Therefore, choice C is the best answer.

Question 12

International Exports,L.P.,is a limited partnership,with $100,000 in de?clared but unpaid profits.International's creditors include Friendly Credit Corporation for $5,000 and Gwen,one of International's limited partners,also for $5,000.When Harry,one of International'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 International to continue in business and file a suit against the general partners to compel this result.Can the court order International to continue? If not,what is the priority of the distribution of International's assets on its dissolution?

Accepted Answer

The answer of International Exports,L.P.,is a limited partnership,with $100,000 in...

Quiz 27: All Forms of Partnerships