Jentz 11e-TBB-Ch36 - Chapter 36 Partnerships and Limited...

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Chapter 36 Partnerships and Limited Liability Partnerships TRUE/FALSE QUESTIONS B1. The Uniform Partnership Act has done much to reduce controversies in the law relating to partnerships. PAGE: 683 TYPE: N
NAT: AACSB Analytic AICPA Legal B2. For most purposes, the law treats a partnership as an aggregate of its members. PAGE: 684 TYPE: N
NAT: AACSB Analytic AICPA Legal B3. Joint ownership of property in and of itself creates a partnership. ANSWER: F PAGE: 684 TYPE: N NAT: AACSB Analytic AICPA Legal B4. A partner may pursue his or her own interest without automatically vio- lating the fiduciary duties that he or she owes to the firm. PAGE: 688 TYPE: =
NAT: AACSB Analytic AICPA Legal B5. A partner’s fiduciary duties may be waived or eliminated in the partnership agreement. 115
116           TEST BANK B—UNIT EIGHT:  BUSINESS ORGANIZATIONS PAGE: 688 TYPE: N
NAT: AACSB Analytic AICPA Legal
CHAPTER 36:  PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS           117 B6. General principles of agency law govern a partner’s authority to bind the partnership in contract. PAGE: 688 TYPE: N
NAT: AACSB Analytic AICPA Legal B7. Any   limit   on   a   partner’s   capacity   to   act   on   the   partnership’s   behalf generally does not affect a third party who does not know about the limit. PAGE: 688 TYPE: N
NAT: AACSB Analytic AICPA Legal B8. In most states, a general partner is jointly and severally liable for all partnership obligations. PAGE: 690 TYPE: N
NAT: AACSB Analytic AICPA Legal B9. On a partner’s dissociation, his or her interest in the partnership must be purchased. PAGE: 692 TYPE: N
NAT: AACSB Analytic AICPA Legal B10. A partnership for a definite term cannot be dissolved before the expiration of the term. PAGE: 693 TYPE: =
NAT: AACSB Analytic AICPA Legal B11. In winding up a partnership, partners can create new obligations on behalf of the partnership. PAGE: 694 TYPE: =
NAT: AACSB Analytic AICPA Legal B12. In   winding   up   a   general   partnership,   partners   receive   distributions   of profits before non-partner creditors are paid. PAGE: 694 TYPE: =
NAT: AACSB Analytic AICPA Legal
118           TEST BANK B—UNIT EIGHT:  BUSINESS ORGANIZATIONS B13. A limited liability partnership must be formed in compliance with state law. PAGE: 694 TYPE: +
NAT: AACSB Analytic AICPA Legal
CHAPTER 36:  PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS           119

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