Question 1

The Uniform Partnership Act governs the operation of partnerships.

Accepted Answer

The Uniform Partnership Act (UPA) is a model act that governs the operation of partnerships in the United States. It has been adopted, with some variations, by most states.

Question 2

In a general partnership,the partners are personally liable for the debts of the partnership.

Accepted Answer

In a general partnership, the partners are personally liable for the debts and obligations of the partnership. This means that if the partnership is unable to pay off its debts, the partners' personal assets may be used to satisfy those debts.

Question 3

On a partner's dissociation,his or her duty of loyalty to the partnership ends.

Accepted Answer

True

Question 4

In a limited liability limited partnership,the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

Accepted Answer

The answer of In a limited liability limited partnership,the liability...

Question 5

An assignment of the interest of a limited partner dissolves a limited partnership.

Accepted Answer

The answer of An assignment of the interest of a...

Question 6

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Accepted Answer

This is one of the main advantages of a limited liability partnership, that the partners are protected from personal liability for the actions of other partners.

Question 7

In a limited partnership,with the exception of the right to participate in management,limited partners have essentially the same rights as general partners.

Accepted Answer

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Question 8

Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Accepted Answer

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Question 9

A partner owes to the partnership and the other partners a duty of loyalty.

Accepted Answer

Partners have a fiduciary duty of loyalty to the partnership and its partners, which means they must act in the best interests of the partnership and its owners, put the partnership's interests before their own, and avoid conflicts of interest.

Question 10

Any event that makes its unlawful for a partnership to continue its business will result in dissolution.

Accepted Answer

This is true. When an event occurs that makes it illegal for a partnership to continue its business, such as a change in law, the partnership must dissolve.

Question 11

Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.

Accepted Answer

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Question 12

A partner's profit from a partnership is taxed as income to the firm.

Accepted Answer

A partner's profit from a partnership is taxed as personal income to the individual partner, not as income to the firm. Partnerships are "pass-through" entities for tax purposes, meaning the profits pass through the business to the partners, who then report their share of the profits on their personal tax returns.

Question 13

In a general partnership,all partners have equal rights in managing the partnership.

Accepted Answer

In a general partnership, all partners have equal rights in managing the partnership.

Question 14

Some states have passed laws prohibiting the withdrawal of limited partners from a limited partnership.

Accepted Answer

Some states have enacted laws that prohibit the withdrawal of limited partners from a limited partnership to provide greater stability and continuity to the partnership.

Question 15

An association cannot be a partnership without an express agreement.

Accepted Answer

An association does not require an express agreement to exist, while a partnership does. Partnerships require a written or verbal agreement outlining the rights and responsibilities of each partner.

Question 16

In a limited partnership,a limited partner has full responsibility for the partnership and for all its debts.

Accepted Answer

In a limited partnership, the general partner has full responsibility for the partnership and its debts while the limited partner has limited liability and is not personally responsible for the partnership's debts beyond their capital contribution.

Question 17

A partner always has the power and the right to dissociate from the partnership.

Accepted Answer

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Question 18

Federal law permits a partnership to be treated as an entity in suits in federal courts.

Accepted Answer

This is true under the Federal Rules of Civil Procedure, which allow partnerships to sue and be sued as entities in federal courts.

Question 19

A partner who pursues his or her own interests automatically violates the partner's fiduciary duties to the partnership.

Accepted Answer

Pursuing one's own interests does not necessarily violate fiduciary duties to the partnership as long as it is done in a transparent and respectful manner and does not harm the partnership. However, if the partner's actions harm the partnership or go against the interests of the partnership, then it would be a violation of their fiduciary duties.

Question 20

A sharing of profits from the ownership of property creates a presumption that a partnership exists.

Accepted Answer

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Quiz 37: B: Partnerships and Limited Liability Partnerships