2009 B-1 Class Questions Preview

2009 B-1 Class Questions Preview - Business Environment...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Environment & Concepts 1 Class Questions 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 1. CPA-02971 A joint venture is a (an): a. Association limited to no more than two persons in business for profit. b. Enterprise of numerous co-owners in a nonprofit undertaking. c. Corporate enterprise for a single undertaking of limited duration. d. Association of persons engaged as co-owners in a single undertaking for profit. CPA-02971 Choice "d" is correct. A joint venture is an association of persons engaged as co-owners in a single (special transaction) undertaking for profit. A joint venture is treated as a partnership for most important legal respects. Choice "a" is incorrect. A joint venture may include more than two persons. Choice "b" is incorrect. A joint venture must have a profit motive. Choice "c" is incorrect. A joint venture is treated as a partnership and not as a corporate enterprise. 2. CPA-02996 In a general partnership, which of the following acts must be approved by all the partners? a. Dissolution of the partnership. b. Admission of a partner. c. Authorization of a partnership capital expenditure. d. Conveyance of real property owned by the partnership. CPA-02996 Choice "b" is correct. As a general rule, decisions regarding matters within the ordinary course of the partnership's business may be controlled by majority vote. Matters outside the ordinary course of the partnership's business require the consent of all the partners. Admitting a new partner is an extraordinary event. Thus, unanimous consent is required. Choice "a" is incorrect. Although dissolution is an extraordinary act, in a general partnership not for a term of years, any one partner may cause a dissolution by giving notice of the intent to withdraw. Choice "c" is incorrect. A capital expenditure could well be within the ordinary scope of partnership business and thus would require only a majority vote. Choice "d" is incorrect. The sale of partnership real property could easily be within the ordinary scope of partnership business (e.g., a partnership can be formed for the purpose of buying and selling real property) and thus would require only a majority vote.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Business Environment & Concepts 1 Class Questions 2 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 3. CPA-03015 Which of the following statements is correct regarding the apparent authority of a partner to bind the partnership in dealings with third parties? The apparent authority: a. Must be derived from the express powers and purposes contained in the partnership agreement. b. Will be effectively limited by a formal resolution of the partners of which third parties are unaware. c.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

2009 B-1 Class Questions Preview - Business Environment...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online