29 p 350 family limited partnerships are designed

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Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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Chapter 2 / Exercise 53
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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29.(p. 350)Family limited partnerships are designed solely for estate planning and asset distribution for wealthy families. TRUEFamily Limited Partnerships allow wealthy families to avoid certain estate taxes by distributing assets from the larger estates to the smaller estates of heirs favorably adjusting the market value of the assets.30.(p. 353)Robert and Philip are operating a general partnership. Under the Revised Uniform Partnership Act, if Robert rightfully or wrongfully dissociates from the partnership, the partnership continues to exist. FALSENormally RUPA allows a partnership to continue after a partner dissociates from the entity, however; in this case the entity terminates because a partnership requires two or more people.31.(p. 342)If someone successfully sues a sole proprietorship, they must exhaust the businesses assets before they may go after the principal's personal assets.
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Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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Chapter 2 / Exercise 53
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Tan
Expert Verified
TRUEThe business's assets must be exhausted before personal assets may be attacked.32.(p. 345)In the absence of an agreement to the contrary, the Revised Uniform Partnership Act mandates that general partnership profits be split equally amongst the partners. TRUEAn agreement will control, however; in the absence of an agreement RUPA gap fills directing that profits be shared equally.33.(p. 349)If a limited partner actively participates in day to day management of the business they may forfeit their limited partner status and lose their limited liability for debts and liabilities. TRUELimited partners may not manage the day to day affairs of the business and if they do they could be treated as general partners.34.(p. 341)An advantage of operating as a sole proprietorship is that personal liability for any business losses is limited to the owner's investment in the business. FALSEA disadvantage of the sole proprietorship is that the owner is personally liable for the
entity's debts beyond their initial investment.35.(p. 346)The Revised Uniform Limited Partnership Act requires that there be a written partnership agreement regarding limited partnerships. FALSEWritten agreements are customary, however; in their absence RULPA will apply.36.(p. 341)If a sole proprietorship loses money, the principal may deduct the losses from her own personal tax liability if any. TRUEProfits or losses reflect on the principal's personal taxes as the sole proprietorship pays no taxes itself.37.(p. 346)A limited partnership is required to have two or more limited partners. FALSEOnly one limited partner is required along with one or more general partners.38.(p. 342)To date, every state in the union has adopted the Revised Uniform Partnership Act except the state of Louisiana.
FALSEAs of 2010, only about 40 states have adopted RUPA.39.(p. 341)One disadvantage of a sole proprietorship business entity is that it is restricted to a singlelocation and cannot expand.

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