B1 ALL 2003 - B1.1 Sole Proprietorship and Joint Venture 1...

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B1.1 Sole Proprietorship and Joint Venture 1. Fanny and John each own and manage their own companies. Fanny's business is manufacturing freight boxes of all types, and John's business is selling freight boxes to different industries. They decide to combine their expertise and knowledge to produce and sell freight boxes specifically designed for the new airline company that just formed in their city. The best form of legal entity for this project is: La d. A joint venture. 2. A sole proprietorship would be an ideal form of business to select if: La b. The individual wanted to be able sell the business at will. 3. Formation of which of the following forms of business do not require the filing of proper documents with the state? La c. Must file (Corporation) Must file (Limited Partnership) Need not file (Sole Proprietorship) 4. Which of the following forms of business can be formed with only one individual owning the business? La b. Yes (Sole Proprietorship) Yes (Limited Liability Company) No (Partnership) 5. Noll Corp. and Orr Corp. are contemplating entering into an unincorporated joint venture. Such a joint venture: La a. Will be treated as a partnership in most important legal respects. 6. What term is used to describe a partnership without a specified duration? La d. A partnership at will B1.2 General Partnership 1. A general partnership must: La b. Have two or more partners. 2. When a partner in a general partnership lacks actual or apparent authority to contract on behalf of the partnership, and the party contracted with is aware of this fact, the partnership will be bound by the contract if the other partners: La b. Yes ( Ratify the contract) No (Amend the partnership agreement) 3. On February 1, Addison, Bradley, and Carter, physicians, formed ABC Medical Partnership. Dr. Bradley was placed in charge of the partnership's financial books and records. On April 1, Dr. Addison joined the City Hospital Medical Partnership, retaining the partnership interest in ABC. On May 1, ABC received a writ of attachment from the court attaching Dr. Carter's interest in ABC. The writ resulted from Dr. Carter's failure to pay a credit card bill.
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On June 1, Dr. Addison was adjudicated bankrupt. On July 1, Dr. Bradley was sued by the other partners of ABC for an accounting of ABC's revenues and expenses. Under the Revised Uniform Partnership Act, which of the preceding events resulted in the dissociation of a partner? La c. Dr. Addison being adjudicated bankrupt. 4. When parties intend to create a partnership that will be recognized under the Revised Uniform Partnership Act, they must agree to: La b. Yes (Conduct a business for profit) No (Share gross receipts from a Business) 5. Park and Graham entered into a written partnership agreement to operate a retail store.
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