Lenb Business Orgs Questions With 100% Correct Answers.
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Module
Lenb Business Orgs
Institution
Lenb Business Orgs
Parties not named in a partnership agreement can be considered partners through a
partnership by estoppel. Identify a true statement about such a party who is considered
a partner. - ️️In many states, the party can be held liable for the costs of the
damages to the customer.
Which of the fo...
Lenb Business Orgs
Parties not named in a partnership agreement can be considered partners through a
partnership by estoppel. Identify a true statement about such a party who is considered
a partner. - ✔️✔️In many states, the party can be held liable for the costs of the
damages to the customer.
Which of the following is not a duty of partners to one another? - ✔️✔️The beneficiary
duty to the other partners
A ______ proprietorship is a business in which one person is in control of the
management and profits. - ✔️✔️sole
If a person started doing business without thinking about the form of the business, he or
she would be a(n) ______. - ✔️✔️sole proprietor
Which of the following is not a recognized advantage of a sole proprietorship? -
✔️✔️Funding is unlimited as stock can be issued to address capital needs.
The proprietor is immune from personal liability for all losses.
Identify a recognized disadvantage of a sole proprietorship. - ✔️✔️Funding is limited to
personal funds and loans.
If a person decides to go into business on his or her own, he or she is creating a
______. - ✔️✔️sole proprietorship
A(n) ______ is the single person at the head of a sole proprietorship - ✔️✔️sole
proprietor
According to __________, a partnership is a voluntary association between two or more
persons who co-own a business for profit. - ✔️✔️the Uniform Partnership Act (UPA)
Deciding what form of business to create is on of the ______ important decisions a
business makes. - ✔️✔️most
Which of the following is a recognized disadvantage of a sole proprietorship? -
✔️✔️The proprietor has personal liability for all losses.
Which of the following is not a recognized advantage of a partnership? - ✔️✔️Individual
partners have immunity from personal liability for all business losses.
, Financial capital can be raised through stock issuance.
A partnership is a ______ association between two or more persons who co-own a
business for ______. - ✔️✔️voluntary; profit
Which of the following is a recognized disadvantage of a partnership? - ✔️✔️Each
partner has personal liability for all business losses.
A written agreement that creates a partnership is called the articles of ______. -
✔️✔️partnership
Identify a recognized disadvantage of a partnership. - ✔️✔️In most cases, each partner
has personal liability for the business losses of another partner.
A partnership is a ______ association between two or more persons who co-own a
business for ______. - ✔️✔️voluntary; profit
The articles of partnership usually include all but which of the following information? -
✔️✔️The classes of stock issued by the partnership
Which of the following is an accurate statement about the formation of partnerships? -
✔️✔️A written agreement that creates a partnership is called the articles of partnership.
Which of the following is typically not included in the articles of partnership? - ✔️✔️The
educational credentials and work experience of each partner
According to most states, in which of the following situations does a partnership by
estoppel exist? - ✔️✔️A third party is aware of a misrepresentation of partnership and
consents to the misrepresentation.
Which of the following is the second stage in the termination of a partnership? -
✔️✔️The winding-up stage
______ defines the ______ of a partnership as the change in the relation of the partners
caused by any partner's ceasing to be associated with the carrying on of the business. -
✔️✔️The Uniform Partnership Act (UPA); dissolution
Parties not named in a partnership agreement can be considered partners through a(n)
______. - ✔️✔️partnership by estoppel
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