LAW 532
capitalization - ✔✔which of the following factors in choosing an entity refers to the business's option
for funding its operations
ch 15 HW - ✔✔
commitments from the franchisee to train the franchisor in reporting and business operations. - ✔✔A
franchise agreement would likely address a number of terms regarding the relationship between
franchisee and franchisor except
corporation - ✔✔one or more principals that invest money in exchange for ownership (stock). the
principals generally have no personal liability for debts and liabilities of the business
Diane and Ralph's partnership agreement does not address when the partnership will terminate. -
✔✔Which of the following constitutes a partnership at will?
Disadvantages of Partnership - ✔✔
Disadvantages of Sole Proprietorship - ✔✔
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False - ✔✔A sole proprietorship can be passed to the proprietor's heirs through a gift or an estate.
False - ✔✔General partnerships are created by filing a form with a government agency.
False - ✔✔In a limited partnership, a limited partner's personal liability, like a general partner's
personal liability, extends to all the partnerships' debts and liabilities.
False - ✔✔The Revised Uniform Limited Partnership Act (RULPA) formally requires a partnership
agreement to govern a limited partnership.
False - ✔✔The Revised Uniform Partnership Act (RUPA) uses the term "withdrawal" to describe the
act of separation whereby a partner no longer wishes to be a principal in a partnership.
False - ✔✔Tom and Ralph drafted a partnership agreement, but did not sign it. In their day-to-day
business dealings they demonstrate a clear intent to carry on as co-owners of a business for profit.
Because they have not yet signed the partnership agreement, they cannot be considered general
partners.
, False - ✔✔When a partner dissociates herself (rightfully or wrongfully) from a general partnership,
the partnership must automatically dissolve, even if the remaining partners wish to continue.
fiduciary - ✔✔principals that manage an llc owe its members a ________ duty
I , II, III, and IV. - ✔✔Which of the following are elements of a general partnership?
I. Association of two or more people.
II. Co-ownership and co-management of a business.
III. Share in profits.
IV. Ongoing relationship.
I and II. - ✔✔Which of the following are true about withdrawal under the RULPA?
I. A general partner is permitted to withdraw at any time.
II. The withdrawal of a general partner automatically results in dissolution of the partnership.
III. Withdrawal requires unanimous consent.
IV. Limited partners may withdraw upon six months notice to the other partners.
I, II, and III - ✔✔Which of the following is an important factor in choosing a business entity?
I. Ease of formation.
II. Management and operation.
III. Funding of the entity.
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IV. Proposed name of entity.
I, II, and III - ✔✔which of the following methods used by partnerships to raise capital:
I. Borrow money from a bank
II. Sell equity to private investors/partners
III. Borrow money from partners
IV. Sell equity through public markets such as the NYSE
I, II, and III. - ✔✔Which of the following is an important factor in choosing a business entity?
I. Liability protection for principals.
II. Tax impact.
III. Capitalization method.
IV. Proposed name of entity.
I, II, and IV. - ✔✔Which of the following entities is possible for a business with four principals?
I. Partnership
II. Limited liability company
III. Sole proprietorship
IV. Corporation
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