BUL 5810 - UNINCORPORATED BUSINESS ASSOCIATIONS
EXAM QUESTIONS WITH VERIFIED ANSWERS
A legal entity separate and distinct from its owners referred to as shareholders,
and formed by filing articles of incorporation is a: - ANSWER corporation
A partner who has no right to participate in control of the business and who has
limited liability is called a: - ANSWER limited partner
In choosing the form in which to conduct business, if ease of formation is the
primary concern, the owners would choose a: - ANSWER general partnership
A __________ is an unincorporated business association consisting of at least one
general partner and at least one limited partner. - ANSWER limited partnership
Which of the following is the most convincing evidence of a partnership
arrangement?
a. Two or more persons are co-owners of property used in a business.
b. Two or more persons have a written agreement regarding a fundraiser for
charity.
c. Two or more persons carry on a business for profit, but they have no formal
agreement.
d. Two persons share a joint savings account in which they deposit money and
share the interest. - ANSWER Two or more persons carry on a business for profit,
but they have no formal agreement.
Which of the following would lack the capacity to become a partner?
a. A trust.
b. An adjudicated incompetent.
c. A corporation - ANSWER An adjudicated incompetent
, Which of the following forms of business association may elect that only the
partners/members are taxed?
a. General partnerships.
b. Limited partnership.
c. Limited liability company. - ANSWER All of these!!!
A partnership agreement should include all but which one of the following?
a. The duties of the partners.
b. The capital contribution of the partners.
c. The agreement for dividing tax liability of the partnership.
d. The division of profits and losses. - ANSWER The agreement for dividing tax
liability of the partnership
A partner owes all of the following duties to the partnership except:
a. duty of loyalty.
b. duty of obedience.
c. duty of care.
d. duty of control. - ANSWER Duty of Control
A partner's interest is subject to the claims of that partner's creditors who may
obtain a judicial lien known as a(n) __________ against the partner's transferable
interest. - ANSWER Changing Order
Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that
arose out of the operation of the business. Jess, a business owner, is not
personally liable if: - ANSWER the business is a corporation and he is a shareholder
Arthur, Betty, and Clara each inherit an undivided one-third interest in an
apartment complex. Instead of selling it, they decide to continue to operate it for
the next few years as a sideline to their other occupations just to see if they can
EXAM QUESTIONS WITH VERIFIED ANSWERS
A legal entity separate and distinct from its owners referred to as shareholders,
and formed by filing articles of incorporation is a: - ANSWER corporation
A partner who has no right to participate in control of the business and who has
limited liability is called a: - ANSWER limited partner
In choosing the form in which to conduct business, if ease of formation is the
primary concern, the owners would choose a: - ANSWER general partnership
A __________ is an unincorporated business association consisting of at least one
general partner and at least one limited partner. - ANSWER limited partnership
Which of the following is the most convincing evidence of a partnership
arrangement?
a. Two or more persons are co-owners of property used in a business.
b. Two or more persons have a written agreement regarding a fundraiser for
charity.
c. Two or more persons carry on a business for profit, but they have no formal
agreement.
d. Two persons share a joint savings account in which they deposit money and
share the interest. - ANSWER Two or more persons carry on a business for profit,
but they have no formal agreement.
Which of the following would lack the capacity to become a partner?
a. A trust.
b. An adjudicated incompetent.
c. A corporation - ANSWER An adjudicated incompetent
, Which of the following forms of business association may elect that only the
partners/members are taxed?
a. General partnerships.
b. Limited partnership.
c. Limited liability company. - ANSWER All of these!!!
A partnership agreement should include all but which one of the following?
a. The duties of the partners.
b. The capital contribution of the partners.
c. The agreement for dividing tax liability of the partnership.
d. The division of profits and losses. - ANSWER The agreement for dividing tax
liability of the partnership
A partner owes all of the following duties to the partnership except:
a. duty of loyalty.
b. duty of obedience.
c. duty of care.
d. duty of control. - ANSWER Duty of Control
A partner's interest is subject to the claims of that partner's creditors who may
obtain a judicial lien known as a(n) __________ against the partner's transferable
interest. - ANSWER Changing Order
Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that
arose out of the operation of the business. Jess, a business owner, is not
personally liable if: - ANSWER the business is a corporation and he is a shareholder
Arthur, Betty, and Clara each inherit an undivided one-third interest in an
apartment complex. Instead of selling it, they decide to continue to operate it for
the next few years as a sideline to their other occupations just to see if they can
