ch 36 - Chapter 36 Partnerships and Limited Liability...

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Sheet1 Page 1 Chapter 36 Partnerships and Limited Liability Partnerships TRUE/FALSE QUESTIONS A1. An association cannot be a partnership without an express agreement. ANSWER: F PAGE: 737 TYPE: N NAT: AACSB Analytic AICPA Legal B1. The Uniform Partnership Act has done much to reduce controversies in the law relating to partnerships. ANSWER: T PAGE: 737 TYPE: N NAT: AACSB Analytic AICPA Legal A2. The Uniform Commercial Code governs the operation of partnerships. ANSWER: F PAGE: 737 TYPE: N NAT: AACSB Analytic AICPA Legal B2. For most purposes, the law recognizes a partnership as an aggregate of its members. ANSWER: F PAGE: 738 TYPE: N NAT: AACSB Analytic AICPA Legal A3. A sharing of profits from the sale of the goodwill of a business creates a presumption that a partnership exists. ANSWER: F PAGE: 738 TYPE: N TEST BANK A¡ªUNIT EIGHT: BUSINESS ORGANIZATIONS NAT: AACSB Analytic AICPA Legal B3. Joint ownership of property in and of itself creates a partnership. ANSWER: F PAGE: 738 TYPE:
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Sheet1 Page 2 N NAT: AACSB Analytic AICPA Legal A4. A corporation can be a partner. ANSWER: T PAGE: 739 TYPE: N NAT: AACSB Analytic AICPA Legal B4. A partner may pursue his or her own interest without automatically violating the fiduciary duties that he or she owes to the firm. ANSWER: T PAGE: 742 TYPE: = NAT: AACSB Analytic AICPA Legal A5. A partner may use and possess partnership property for any purpose. ANSWER: F PAGE: 742 TYPE: N NAT: AACSB Analytic AICPA Legal B5. A partner¡¯s fiduciary duties may be waived or eliminated in the partnership agreement. ANSWER: F PAGE: 742 TYPE: N NAT: AACSB Analytic AICPA Legal A6. A partner owes a partnership and its partners a duty of gross negligence and reckless conduct. ANSWER: F PAGE: 742 TYPE: N NAT: AACSB Analytic AICPA Legal CHAPTER 36: PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS B6. General principles of agency law pertain to a partner¡¯s authority to bind a partnership in contract. ANSWER: T PAGE: 743 TYPE: N NAT: AACSB Analytic AICPA Legal
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Sheet1 Page 3 A7. The extent of implied authority is generally broader for agents than for partners. ANSWER: F PAGE: 743 TYPE: N NAT: AACSB Analytic AICPA Legal B7. Any limit on a partner¡¯s capacity to act on the partnership¡¯s behalf does not affect a third party who does not know about it. ANSWER: T PAGE: 743 TYPE: N NAT: AACSB Analytic AICPA Legal A8. A partner cannot ¡°wrongfully¡± dissociate from a partnership. ANSWER: F PAGE: 746 TYPE: = NAT: AACSB Analytic AICPA Legal B8. In most states, a general partner is jointly and severally liable for all partnership obligations. ANSWER: T PAGE: 744 TYPE: N NAT: AACSB Analytic AICPA Legal A9. A partnership dissolves when a partner ceases to be associated with the carrying on of partnership business. ANSWER: F
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ch 36 - Chapter 36 Partnerships and Limited Liability...

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