BUL 3310 (FLORIDA STATE UNIVERSITY)
EXAM QUESTIONS & CORRECT ANSWERS |
ALREADY GRADED A+ Phil has a 1/4 partnership interest in Green & Sons. He has been denied access to
thepartnership books and records for over a year and he suspects that one of the
partnershas been engaging in secret busi...
Phil has a 1/4 partnership interest in Green & Sons. He has been denied access to
thepartnership books and records for over a year and he suspects that one of the
partnershas been engaging in secret business transactions using partnership funds.
Phil wantsto know the status of the business. Phil's remedy in this situation is to go to
a court of equity for an .
a. Charging order
b. Marshalling order
c. Accounting
d. Decree of insolvency
One partner has the ability to veto the admission of a new partner into the business.
T/F?
True
John, a partner in KLM Partners, had a personal loan from First Bank for 35,000. First
Bank got a judgment against John after he defaulted on the loan. First Bank can
reachJohn's interest in KLM Partners and require that a receiver be appointed to take
John'sshare of the partnership profits to satisfy the judgment. The court order that will
do thisis an
a. Marshalling order
b. Accounting order
c. Charging order
d. Attachment order
Partnership agreements often fund the purchase of a deceased partners' partnership
interests with
a. Life insurance policies
b. Distributions of retained earnings
c. Levies on partnership interests
d. Partner advances
,The bankruptcy of a partner will cause the dissolution of the partnership by operation
oflaw.
T/F?
True
Partnership books must be kept in the firm's place of business and be accessible to
allpartners
T/F?
True
A partnership maybe created by an express agreement between the parties or it may
beimplied from their conduct.
T/F?
True
Subchapter S corporations are limited to shareholders.
10
35
100
There is no limit to the number of shareholders in a Subchapter S corporation.
The written agreement between two or more persons that creates a partnership and
sets for the rights and duties of each partner is the .
a. Articles of incorporation
b. Articles of partnership
c. By laws
d. charter
A partnership is a taxable entity.T/F?
False
If net profits are retained in a Subchapter S corporation, income tax must be paid by
shareholders on these earnings even though the earnings have not yet been
received.T/F
True
A limited partnership must have at least one general partner and one limited partner.
T/F?
True
,Which of the following is an informal association of two or more persons who agree to
engage as co-owners in a single business transaction?
a. Joint venture
b. General partnership
c. Trading group
d. Limited partnership
Which of the following issues do not require a unanimous vote of the partners?
a. Admission of a new partner
b. Confession of a judgment against the partnership
c. Disposal of the good will of the business
d. Hiring an office manager for 40 hours a week.
The court order directing that the share of profits due a partner be given to his or her
creditor to satisfy a judgment is a order.
a. Charging
b. Marshaling
c. Accounting
d. Collection
A partner's capital contribution may consist in business experience or service to the
firm.
T/F?
False
Partnerships are required to use the term "Company" in their names.T/F?
False
Which of the following statements about the taxation of corporations is false?
a. Premiums paid for employee health insurance plans are fully deductible.
b. Profits retained by the corporation are normally taxable to the shareholders under
thecorporate pass through rule.
c. Salaries paid to employees are deductible expenses for the corporation.
d. Most states impose license fees or franchise taxes on corporations doing business
inthe state.
May is one of three limited partners in a limited partnership. Each limited partner
madea capital contribution of $50,000. Assume there is a judgment against the
, partnership for $300,000 and that both the partnership and the general partner are
insolvent. Whatis the maximum amount that May will have to pay on the judgment?
a. 0: May is a limited partner so has no liability for the debts of the partnership under
anycircumstances.
b. $50,000: May's capital contribution can be applied to the debt, but she is not
personallyliable beyond that.
c. $100,000: May will be liable for up to 1/3 of the judgment since there are three
limitedpartners.
d. $300,000: As a limited partner May has joint and several liability for the debts of the
partnership so she could be personally liable for the full amount.
By statute, a limited partnership must have a minimum of generalpartners.
a. one
b. two
c. four
d. five
A Subchapter S corporation is taxed in the same way a partnership is taxed.T/F?
True
Any change in the identity of the partners, whether through death, withdrawal, or the
adding of a new partner, results in the of the old partnership.
a. Termination
b. Winding up
c. Dissolution
d. Disengagement
A partner who does not participate in management and whose existence is not known
by the public is a
a. Silent partner
b. Dormant partner
c. Secret partner
d. Phantom
The purpose of a buy and sell agreement is to
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