TJ_Comp 20_TB_Ch42

TJ_Comp 20_TB_Ch42 - Chapter 42PARTNERSHIPS TRUE/FALSE 1....

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Chapter 42—PARTNERSHIPS TRUE/FALSE 1. The Uniform Partnership Act, a codification of partnership law, has been adopted by 49 states. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 2. Each partner is an agent of the partnership. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. A partnership is a voluntary, consensual relationship imposed by law. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 4. A partnership involves partners' contributions of capital, services, or a combination of these. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. A partnership is organized for the profit of its members. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. The rights of partners are determined by the partnership agreement. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 7. A partnership may be formed for any legal purpose. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. A partnership must have a name. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 9. A partnership may occur even though the parties did not label their relationship a partnership. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 10. The burden of proving the existence of a partnership will always fall on one of the partners. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 11. The sharing of profits and losses is conclusive evidence of partnership. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 12. Sharing of gross returns, as compared to the sharing of profits, is strong evidence of a partnership. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic
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13. The mere fact that an enterprise is described as a partnership is not controlling or binding regarding its true business form. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 14. All partners must contribute money to be treated as partners. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 15. As in the case of agency, the burden of proving the existence of a partnership is on the person who claims that one exists. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 16. The fact that parties share profits and losses is strong evidence of the existence of a partnership. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 17. When profits are received in payment of a debt or as payment for the goodwill of the business, this is strong evidence of a partnership. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 18. Persons who are not partners under appropriate circumstances may be held liable to third persons as though they were partners. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 19. A registration certificate for a partnership's fictitious name contained the names of Barry, Boyd, and Swartz. Cruise extended credit to the firm in reliance in part on the certificate that named Swartz as a partner. Swartz, in fact, had no knowledge of the certificate and never had agreed to be a partner. Be- cause of Cruise's reliance on the certificate and the statement that Swartz was a partner, Swartz has a partner's liability insofar as Cruise is concerned. ANS: F
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch42 - Chapter 42PARTNERSHIPS TRUE/FALSE 1....

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