100%(13)13 out of 13 people found this document helpful
This preview shows page 1 - 3 out of 9 pages.
CourseLegal Environment of BusinessTestChapter 13 Review QuizStatusCompletedAttempt Score10 out of 12 points Results DisplayedAll Answers, Submitted AnswersQuestion 10.5 out of 0.5 pointsA limited partnership requiresSelected Answer:at least one general and one limited partner.Answers:at least two limited partners.at least two general partners.at least one general and one limited partner.a written limited partnership agreement.Question 20 out of 0.5 pointsIn a general partnershipSelected Answer:profits and losses must be split equally among the partners.Answers:an unequal split of profits may be agreed to based on the partnership agreement, but losses must be split equally.profits and losses may be unequally split based on the partnership agreement.profits must be split equally, but losses may be split unequally based on the partnership agreement.profits and losses must be split equally among the partners.Question 30 out of 0.5 pointsSonya and Davi are going to open a sporting goods store. They sign a written limitedpartnership agreement naming Davi as a limited partner and Sonya as the general partner. Sonya files a certificate of limited partnership with the state. Sonya contributes $100,000 toward the start-up, while Davi contributes $200,000. They agree to split profits evenly because Sonya will be working in the store and operatingthe day-to-day business. About a month after they open, the business is not doing well, so Davi starts becoming more involved. Soon he is requiring that Sonya approve all purchases with him, and Davi is actively directing Jack, the sole employee. One day, Geoff, a customer, is injured when a bowling ball falls off a shelf and shatters his foot. Geoff sues and is awarded a judgment of $1 million.
Selected Answer:Sonya and Davi are each liable for up to $500,000.Answers:Under the circumstances, Sonya and Davi are both jointly and severally liable for the full $1 million.Sonya and Davi are each liable for up to $500,000.Whoever negligently secured the bowling ball on the shelf is liable for the $1 million liability.As this was a limited partnership, Sonya is liable for $800,000 and Daviis liable for $200,000.Question 40.5 out of 0.5 pointsRedrock GP has decided to go out of business. Selling the partnership assets and making payments to creditors will occur during the ________ phase of the closing of a partnership.Selected Answer:winding-upAnswers:terminationwinding-updissociationdissolutionQuestion 50.5 out of 0.5 pointsBoris, Carina, and Theo have decided to go into business as a limited partnership importing and selling exotic spices. Boris and Carina will manage the business, and Theo will have no role in the day-to-day operations. Boris and Carina have each invested $500,000, and Theo has contributed the building and land that the businesswill be operated from. Alina, a customer, contracts a rare disease from a contaminated spice sold by the company and sues. Alina is awarded a judgment for $5 million. After she exhausts the assets of the partnership, having the property and building sold, and seizing all other property, $3 million remains unpaid.