Question 1

Only the partnership agreement determines the implied authority of partners.

Accepted Answer

A) True 
 B)False

Question 2

[Fishing Kings] Kyle and Felix have a business called Fishing Kings,which escorts tourists on fishing expeditions in Florida.Fishing Kings is doing poorly.Ernesto,a contractor,wants $10,000 for the work he did on Kyle's house.Colin,a tech consultant,wants $7,000 owed to him for setup and purchase of computers in Fishing Kings' office.Kyle sells one of Fishing Kings' boats in order to pay some of the debts.When Felix finds out about the sale,he is furious and yells that Kyle had no right to sell the boat without his permission.Kyle responds that he was acting as an agent of the partnership in selling the boat.
-Which creditor,if any,has priority in Fishing Kings' assets?

Accepted Answer

A)  Ernesto and Colin have equal priority in the assets of Fishing Kings.
B)  Kyle and Felix.
C)  Ernesto,if he filed his claim first.
D)  Ernesto,because he is a creditor of land.
E)  Colin,because creditors of the partnership have first priority in partnership assets.F) D) and E)
G) A) and B)

Question 3

Unless the articles of partnership states otherwise,which of the following is true regarding the rights of partners to share in profits?

Accepted Answer

A)  Distribution of profits is suspended until the partners amend the articles of partnership to address the distribution of profits.
B)  Partners share in profits in proportion to the amount of capital contributed to the partnership.
C)  Partners share in profits in proportion to their seniority with the partnership with partners of equal seniority sharing equally in profits.
D)  Partners share in profits in proportion to the amount of work done for the partnership.
E)  All partners have a right to share profits equally.F) D) and E)
G) B) and D)

Question 4

Describe the liability,if any,of incoming partners.

Accepted Answer

When a partnership adds another partner,...

Question 5

Title to property may not be put in the name of a partnership.

Accepted Answer

A) True 
 B)False

Question 6

Each partner has unlimited personal liability for all acts of the partnership's partners.

Accepted Answer

A) True 
 B)False

Question 7

No partnership is created based upon an employer sharing profits with an employee as payment for work.

Accepted Answer

A) True 
 B)False

Question 8

Unless otherwise stated in the partnership agreement,each partner will have one vote in determining how the partnership is managed,even if one partner has an unusually large proportion of management duties.

Accepted Answer

A) True 
 B)False

Question 9

Is Andrew entitled to inspect the books?

Accepted Answer

A)  Yes.
B)  Only if he can establish fraud on the part of another partner.
C)  Only if he is the managing partner.
D)  Only if the articles of partnership specifically gave him that right or the other partners agreed.
E)  Only if the articles of partnership specifically gave him that right.F) A) and B)
G) C) and E)

Question 10

Which of the following property rights do partners have,when the articles of partnership are silent?

Accepted Answer

A)  The right to participate in the management of the business,the right to possess partnership property,and the right to an interest in the partnership.
B)  The right to participate in the management of the business and the right to an interest in the partnership,but not the right to possess partnership property.
C)  The right to participate in the management of the business and the right to possess partnership property,but not the right to an interest in the partnership.
D)  The right to participate in the management of the business,but not the right to possess partnership property or the right to an interest in the partnership.
E)  The right to possess partnership property and the right to an interest in the partnership;but not the right to participate in the management of the business because while the right to participate in management may exist,it is not a property right.F) C) and D)
G) B) and C)

Exam 36: Partnerships: Nature, formation, and Operation

Correct Answer
verified

No partnership is created based upon an employer sharing profits with an employee as payment for work.

Correct Answer
verified

Unless the articles of partnership states otherwise,which of the following is true regarding the rights of partners to share in profits?

Correct Answer
verified

Describe the liability,if any,of incoming partners.

Correct Answer
verified
When a partnership adds another partner,...
View Answer

Is Andrew entitled to inspect the books?

Correct Answer
verified

Each partner has unlimited personal liability for all acts of the partnership's partners.

Correct Answer
verified

Unless otherwise stated in the partnership agreement,each partner will have one vote in determining how the partnership is managed,even if one partner has an unusually large proportion of management duties.

Correct Answer
verified

Title to property may not be put in the name of a partnership.

Correct Answer
verified

Only the partnership agreement determines the implied authority of partners.

Correct Answer
verified

Which of the following property rights do partners have,when the articles of partnership are silent?

Correct Answer
verified

Exam 36: Partnerships: Nature, formation, and Operation

Correct AnswerverifiedShow Answer

No partnership is created based upon an employer sharing profits with an employee as payment for work.

Correct AnswerverifiedShow Answer

Unless the articles of partnership states otherwise,which of the following is true regarding the rights of partners to share in profits?

Correct AnswerverifiedShow Answer

Describe the liability,if any,of incoming partners.

Correct AnswerverifiedWhen a partnership adds another partner,...View AnswerShow Answer

Is Andrew entitled to inspect the books?

Correct AnswerverifiedShow Answer

Each partner has unlimited personal liability for all acts of the partnership's partners.

Correct AnswerverifiedShow Answer

Unless otherwise stated in the partnership agreement,each partner will have one vote in determining how the partnership is managed,even if one partner has an unusually large proportion of management duties.

Correct AnswerverifiedShow Answer

Title to property may not be put in the name of a partnership.

Correct AnswerverifiedShow Answer

Only the partnership agreement determines the implied authority of partners.

Correct AnswerverifiedShow Answer

Which of the following property rights do partners have,when the articles of partnership are silent?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
When a partnership adds another partner,...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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