Question 1

Which of the following factors is not required to qualify a business as a partnership?

Accepted Answer

While equal investments of effort and capital may be commonly associated with partnerships, it is not a legal requirement for a business to qualify as a partnership. The other factors listed (association of two or more persons, carrying on a business, co-ownership of the business, sharing of profits) are all necessary elements for a business to be classified as a partnership.

Question 2

Which of the following is true about the Uniform Partnership Act?

Accepted Answer

The Uniform Partnership Act has been adopted by most states, but not all states. It is not a federal statute and does not govern every partnership agreement formed in states where the Act is applicable. It is legally binding in states where it has been adopted.

Question 3

The duty of ________ requires general partners to adhere to the provisions of the partnership agreement and the decisions of the partnership.

Accepted Answer

The duty of obedience requires general partners to follow the partnership agreement and the decisions made by the partnership.

Question 4

For which torts can a partner be held responsible?

Accepted Answer

Under the doctrine of vicarious liability, a partner can be held responsible for any tort committed by any partner in the course and scope of the partnership business. This means that the partnership as a whole can be held liable for the actions of any partner acting on behalf of the partnership. Therefore, choice C is the most accurate answer.

Question 5

Which of the following best describes the Revised Uniform Limited Partnership Act?

Accepted Answer

The Revised Uniform Limited Partnership Act is a standard law that is state law in the states that have enacted it, and generally applies to limited partnerships, replacing an earlier uniform law covering limited partnerships.

Question 6

In the absence of an agreement to the contrary,all general partners have a(n)________ right to participate in the management of the general partnership business.

Accepted Answer

The term "equal" indicates that all general partners have the same right to participate in the management of the general partnership business. This is the default rule in the absence of an agreement stating otherwise.

Question 7

A written agreement between partners is called:

Accepted Answer

All three options - a general partnership agreement, articles of general partnership, or articles of partnership - are acceptable terms for a written agreement between partners in a general partnership. Therefore, the best answer is E.

Question 8

What is true about a partner's right to participate in the management of the partnership?

Accepted Answer

In a general partnership, each partner has the right to participate in the management of the partnership by default, but this right can be modified or eliminated through the partnership agreement.

Question 9

Which of the following is true about the Uniform Partnership Act (UPA?)

Accepted Answer

The UPA is a gap-filling statute, meaning that it applies when a partnership agreement does not address a particular issue. It does not require a partnership agreement to be enforceable, nor does it prohibit individuals from varying its terms. It also does not make an attempted partnership agreement unenforceable. While a written agreement is always preferred, a partnership agreement can be oral or implied.

Question 10

A general partner who is offered an opportunity on behalf of the partnership cannot ________ the partnership opportunity.

Accepted Answer

A general partner cannot take or seize a partnership opportunity for their own personal gain (usurp). They have a duty to act in the best interest of the partnership and cannot deny or avoid the opportunity unless it would not be beneficial for the partnership. They also cannot indemnify themselves for any actions that harm the partnership. Averting the opportunity is not necessarily the best choice as it may be a beneficial opportunity for the partnership.

Question 11

Which of the following best describes who may be a partner in a limited partnership?

Accepted Answer

In a limited partnership, partners can include individuals, corporations, limited partnerships, and estates, as these entities can all hold partnership interests.

Question 12

Which of the following is true regarding the liability of the partners in a limited partnership?

Accepted Answer

In a limited partnership, the limited partners have limited liability for partnership debts, whereas the general partner(s) have unlimited liability. Therefore, option C is the correct answer. Option A, B, and D are incorrect, as they do not properly reflect the limited liability nature of the limited partnership. Option E is also incorrect, as the liability of the shareholders of a corporation that is a partner depends on the extent of their investment in the corporation, and not on the partnership debts.

Question 13

A limited partnership has two (2)types of partners: (1)________ partners; and (2)________ partners.

Accepted Answer

A limited partnership has two types of partners: (1) general partners, who manage the business and are personally liable for its debts, and (2) limited partners, who invest money in the business but have limited liability and no management authority. Therefore, choice A is the correct answer. Choices B, C, D, and E do not accurately describe the types of partners in a limited partnership.

Question 14

What was the result in Zuckerman v.Antenucci,involving the medical malpractice action in which the plaintiff sued both the attending doctor and his partner?

Accepted Answer

In Zuckerman v. Antenucci, the court held that both partners were jointly and severally liable for the judgment in a medical malpractice action, regardless of which partner actually provided treatment. This means that the plaintiff could recover the full amount of the judgment from either partner, and each partner would be responsible for paying the entire amount. There was no limitation on liability based on capital contributions or lack of agreement between the partners.

Question 15

Where there is no agreement to share profits in a partnership,but one partner invests twice as much capital in the partnership as the other over the course of the year,how are the profits to be distributed?

Accepted Answer

The answer of Where there is no agreement to share...

Question 16

When a new partner is admitted to a pre-existing partnership,the new partner has:

Accepted Answer

When a new partner is admitted to a pre-existing partnership, they have liability to the extent of their investment for the obligations that arose before joining the partnership, and unlimited liability for those arising afterwards. This means that the new partner's personal assets are at risk for any future obligations or debts of the partnership. However, they are only responsible for the debts incurred before they joined up to the amount that they invested in the partnership.

Question 17

A limited partnership is required to have at least:

Accepted Answer

A limited partnership must have at least one general partner and one limited partner. The general partner has unlimited liability and is responsible for managing the business, while the limited partner has limited liability and does not participate in management.

Question 18

Limited partnerships are also referred to as ________ partnerships.

Accepted Answer

Limited partnerships are also known as special partnerships because they have both general partners (with unlimited liability) and limited partners (with liability limited to their investment).

Question 19

Under the Uniform Partnership Act,general partners have ________ liability for torts and breaches of trust.

Accepted Answer

The Uniform Partnership Act provides that general partners have joint and several liability for torts and breaches of trust. This means that each partner is individually responsible for the entire amount of damages awarded, and the injured party can recover from any or all of the partners. This is different from express and implied liability (A), legal and equitable liability (B), or conditional and unconditional liability (D), which are not applicable to partnerships. Reserved and unreserved liability (E) is not a recognized concept in partnership law.

Question 20

A partnership agreement:

Accepted Answer

A partnership agreement may be implied from the conduct of the parties, meaning that even without a written or oral agreement, the actions and interactions of the parties can establish a partnership.

Quiz 26: Small Business, Entrepreneurship, and Partnerships

Which of the following factors is not required to qualify a business as a partnership?

Which of the following is true about the Uniform Partnership Act?

The duty of ________ requires general partners to adhere to the provisions of the partnership agreement and the decisions of the partnership.

For which torts can a partner be held responsible?

Which of the following best describes the Revised Uniform Limited Partnership Act?

In the absence of an agreement to the contrary,all general partners have a(n) ________ right to participate in the management of the general partnership business.

A written agreement between partners is called:

What is true about a partner's right to participate in the management of the partnership?

Which of the following is true about the Uniform Partnership Act (UPA?)

A general partner who is offered an opportunity on behalf of the partnership cannot ________ the partnership opportunity.

Which of the following best describes who may be a partner in a limited partnership?

Which of the following is true regarding the liability of the partners in a limited partnership?

A limited partnership has two (2) types of partners: (1) partners; and (2) partners.

What was the result in Zuckerman v.Antenucci,involving the medical malpractice action in which the plaintiff sued both the attending doctor and his partner?

Where there is no agreement to share profits in a partnership,but one partner invests twice as much capital in the partnership as the other over the course of the year,how are the profits to be distributed?

When a new partner is admitted to a pre-existing partnership,the new partner has:

A limited partnership is required to have at least:

Limited partnerships are also referred to as ________ partnerships.

Under the Uniform Partnership Act,general partners have ________ liability for torts and breaches of trust.

A partnership agreement:

Quiz 26: Small Business, Entrepreneurship, and Partnerships

Which of the following factors is not required to qualify a business as a partnership?

Which of the following is true about the Uniform Partnership Act?

The duty of ________ requires general partners to adhere to the provisions of the partnership agreement and the decisions of the partnership.

For which torts can a partner be held responsible?

Which of the following best describes the Revised Uniform Limited Partnership Act?

In the absence of an agreement to the contrary,all general partners have a(n) ________ right to participate in the management of the general partnership business.

A written agreement between partners is called:

What is true about a partner's right to participate in the management of the partnership?

Which of the following is true about the Uniform Partnership Act (UPA?)

A general partner who is offered an opportunity on behalf of the partnership cannot ________ the partnership opportunity.

Which of the following best describes who may be a partner in a limited partnership?

Which of the following is true regarding the liability of the partners in a limited partnership?

A limited partnership has two (2) types of partners: (1) ________ partners; and (2) ________ partners.

What was the result in Zuckerman v.Antenucci,involving the medical malpractice action in which the plaintiff sued both the attending doctor and his partner?

Where there is no agreement to share profits in a partnership,but one partner invests twice as much capital in the partnership as the other over the course of the year,how are the profits to be distributed?

When a new partner is admitted to a pre-existing partnership,the new partner has:

A limited partnership is required to have at least:

Limited partnerships are also referred to as ________ partnerships.

Under the Uniform Partnership Act,general partners have ________ liability for torts and breaches of trust.

A partnership agreement:

A limited partnership has two (2) types of partners: (1) partners; and (2) partners.