LAW 532
IV only - ✔✔Which of the following is not an important factor in choosing a business
entity?
I. Liability protection for principals.
II. Tax impact.
III. Capitalization method.
IV. Proposed name of entity.
Principals - ✔✔A business entity has at least one or more _______, who are the
owners of the company.
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.
joint and several - ✔✔Glenn and Curtis are general partners in the business of selling
widgets. As general partners, they have ______ liability for all debts and liabilities of
the widget partnership.
lack of protection for personal assets from business liabilities - ✔✔A sole
proprietorship is an attractive entity for start-up businesses. However, the primary
downside is ___________.
Roberts may execute the judgment against Boswell's personal assets. - ✔✔Boswell is
a sole proprietor and negligently injures Roberts while providing construction services.
Boswell is found liable for the injury, and Roberts obtains a judgment against Boswell
for $100,000. Boswell's business is out of assets. Which of the following is true?
Romulus or Remus - ✔✔Romulus, Remus, and Caesar form RRC L.P., a limited
partnership to develop land for a shopping center. Romulus and Remus are general
, partners, while Caesar is a limited partner. Romulus borrows money for the partnership
from a local bank without Remus's or Caesar's knowledge. If the business assets of
RRC are not sufficient to pay back the loan, where may the bank turn for the balance of
the loan?
Roberts may execute the judgment against Boswell's personal assets. - ✔✔Boswell is
a sole proprietor who prepares tax returns for Roberts. Boswell negligently files a tax
return with a serious error that results in Roberts being fined $10,000 by tax authorities.
Roberts obtains a judgment against Boswell for $10,000. Which of the following is
true?
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.
It has at least one general partner and at least one limited partner. - ✔✔Which of the
%
following is true about a limited partnership?
III and IV - ✔✔Which of the following are not true about withdrawal under the RULPA?
I. A general partner may always withdraw at any time.
II. The withdrawal of a general partner does not automatically result in dissolution of
the partnership.
III. Withdrawal of a general partner triggers winding up.
IV. Limited partners may withdraw upon 30 days 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.
IV. Proposed name of entity.
IV only - ✔✔Which of the following is not an important factor in choosing a business
entity?
I. Liability protection for principals.
II. Tax impact.
III. Capitalization method.
IV. Proposed name of entity.
Principals - ✔✔A business entity has at least one or more _______, who are the
owners of the company.
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.
joint and several - ✔✔Glenn and Curtis are general partners in the business of selling
widgets. As general partners, they have ______ liability for all debts and liabilities of
the widget partnership.
lack of protection for personal assets from business liabilities - ✔✔A sole
proprietorship is an attractive entity for start-up businesses. However, the primary
downside is ___________.
Roberts may execute the judgment against Boswell's personal assets. - ✔✔Boswell is
a sole proprietor and negligently injures Roberts while providing construction services.
Boswell is found liable for the injury, and Roberts obtains a judgment against Boswell
for $100,000. Boswell's business is out of assets. Which of the following is true?
Romulus or Remus - ✔✔Romulus, Remus, and Caesar form RRC L.P., a limited
partnership to develop land for a shopping center. Romulus and Remus are general
, partners, while Caesar is a limited partner. Romulus borrows money for the partnership
from a local bank without Remus's or Caesar's knowledge. If the business assets of
RRC are not sufficient to pay back the loan, where may the bank turn for the balance of
the loan?
Roberts may execute the judgment against Boswell's personal assets. - ✔✔Boswell is
a sole proprietor who prepares tax returns for Roberts. Boswell negligently files a tax
return with a serious error that results in Roberts being fined $10,000 by tax authorities.
Roberts obtains a judgment against Boswell for $10,000. Which of the following is
true?
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.
It has at least one general partner and at least one limited partner. - ✔✔Which of the
%
following is true about a limited partnership?
III and IV - ✔✔Which of the following are not true about withdrawal under the RULPA?
I. A general partner may always withdraw at any time.
II. The withdrawal of a general partner does not automatically result in dissolution of
the partnership.
III. Withdrawal of a general partner triggers winding up.
IV. Limited partners may withdraw upon 30 days 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.
IV. Proposed name of entity.
