59. The of partnership affairs involves completing any unfinished business and then collecting and distributing the
partnership’s assets.
a. winding down
b. resetting
c. winding up
d. terminating
e. dissolution
60. In general, if a partnership agreement does not specify what happens in case of the death or departure of a partner,
one looks to:
a. Federal Partnership Act
b. Robinson-Patman Act
c. Uniform Partnership Act
d. Partnership Termination Act
e. Partnership Operation Act
61. In general, if a partnership agreement does not specify what happens in case of the death or departure of a partner,
one looks to:
a. Federal Partnership Act
b. Robinson-Patman Act
c. Partnership Operation Act
d. Partnership Termination Act
e. none of the other choices
62. The dissolution of a partnership occurs:
a. when an event takes place that precludes the partners from continuing in business
b. during the process of completing any unfinished business of the partnership
c. during the collection and distribution of the partnership‘s assets
d. when a certificate of limited partnership is executed
e. none of the other choices
63. The dissolution of a partnership may occur:
a. if a partner is found to be bankrupt
b. if the business of the partnership is made unlawful
c. if a partner dies
d. if a partner is found to be bankrupt or if a partner dies
e. if a partner is found to be bankrupt or if a partner dies or if the business of the partnership is made unlawful
64. Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances
except:
a. bankruptcy of a partner
b. withdrawal of a partner
c. change in financial condition of a partner
d. death of a partner
e. all of the other choices would require dissolution
65. Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances
except:
a. bankruptcy of a partner
b. withdrawal of a partner
c. death of a partner
d. withdrawal or death of a partner only
e. bankruptcy, withdrawal or death of a partner
66. Which of the following could lead to the dissolution of a partnership:
a. withdrawal of a partner
b. death of a partner
c. bankruptcy of a partner
d. all of the other specific choices are correct
e. none of the other specific choices are correct
67. During the course of a partnership’s winding-up process, the partners owe each other:
a. a duty to mitigate
b. a duty to compete fully
c. a duty to refrain from termination
d. a duty of discounting
e. none of the other choices
68. During the course of a partnership’s winding-up process, the partners owe each other:
a. a duty to disclose all finances of the partnership
b. a duty to compete fully
c. a duty to refrain from termination
d. a duty of discounting
e. a duty to mitigate
69. A business organization made up of two or more persons who have entered into an agreement to carry on a
business venture for a profit, and not all persons have the right to participate in management decisions is a:
a. proprietorship
b. limited partnership
c. cooperative
d. general partnership
e. none of the other choices
70. The business organization that has at least one general partner and other investors who have limited liability is a:
a. corporation
b. general partnership
c. limited partnership
d. limited liability company
e. proprietorship
71. A limited partnership is different from a general partnership because:
a. a limited partnership can have only two people in active management
b. there are limits to annual capital gains in limited partnership
c. all partners in a limited partnership must actively participate in major managerial decisions
d. a limited partnership may have only one general partner
e. none of the other choices
72. A business organization in which some of the partners are not liable for partnership debts is called a:
a. no liability partnership
b. limited liability partnership
c. partial liability partnership
d. local liability partnership
e. unlimited liability partnership
73. A business organization in which some of the partners are not liable for partnership debts is called a:
a. no liability partnership
b. unlimited liability partnership
c. partial liability partnership
d. local liability partnership
e. none of the other choices are correct
74. In most states a limited partnership does not have to file what information with the appropriate state official?
a. name of the business
b. names and addresses of all partners
c. contributions each partner has made
d. the share of profits to be paid to each partner
e. all of the other choices must be filed
75. In most states a limited partnership does not have to file what information with the appropriate state official?
a. name of the business
b. names and addresses of all partners
c. bankruptcy history of each partner
d. the share of profits to be paid to each partner
e. all of the other choices must be filed
76. Which of the following are not required to be in a certificate of limited partnership:
a. the type or character of the business
b. the business positions to be held by each partner
c. the proportion of profits to be earned by each partner
d. the business positions to be held by each partner and the proportion of profits to be earned by each partner
e. the business positions to be held by each partner and the proportion of profits to be earned by each partner
and the proportion of profits to be earned by each partner
77. Under the Uniform Limited Partnership Act, a written partnership agreement must include:
a. the name of the business
b. the type or character of the business
c. the contributions of each partner
d. the name of the business and the type or character of the business
e. the name of the business and the type or character of the business and the contributions of each partner
78. Which of the following must be contained in a certificate of limited partnership under the Uniform Limited
Partnership Act:
a. name of the business
b. type or character of the business
c. the address of an agent who is designated to receive legal process
d. duration of the limited partnership
e. all of the other choices are correct
79. Which of the following must be contained in a certificate of limited partnership under the Uniform Limited
Partnership Act:
a. contributions of each partner
b. names and addresses of each general and limited partner
c. the address of an agent who is designated to receive legal process
d. the proportion of the profits that each partner is entitled to receive
e. all of the other choices are correct
80. Which of the following statement(s) is (are) true?
a. a partnership may consist entirely of limited partners
b. a limited partner may exercise control over the business in proportion to his interest in it
c. a partnership must obtain a charter from the state to be recognized as a legal entity
d. all of the other specific choices are true
e. none of the other choices
81. Which of the following statement(s) is (are) true?
a. a partnership may consist entirely of limited partners
b. a limited partner may exercise control over the business in proportion to his interest in it
c. a limited partnership must have at least one general partner
d. all of the other specific choices are true
e. none of the other choices
82. General partners in a limited partnership:
a. have no liability
b. have limited liability
c. are personally liable to the partnership’s creditors
d. are personally liable to the secretary of state
e. are personally liable to the partnership’s creditors only if they choose to be
83. General partners in a limited partnership:
a. have no liability
b. have limited liability
c. are personally liable to the partnership’s creditors only if they choose to be
d. are personally liable to the secretary of state
e. none of the other choices are correct
84. In a limited partnership the are investors who may not participate in managing the business.
a. restricted partners
b. general partners
c. limited partners
d. nonvoting partners
e. real partners
85. In a limited partnership the are investors who may not participate in managing the business.
a. restricted partners
b. general partners
c. investment partners
d. nonvoting partners
e. none of the other choices are correct
86. Limited partners are similar to corporate shareholders in that:
a. both have unlimited liability
b. there is no liability for either
c. both are liable to the extent of their investment
d. there must be one general partner
e. none of the other choices
87. Limited partners are similar to corporate shareholders in that:
a. both have unlimited liability
b. there is no liability for either
c. tax rates are the same
d. there must be one general partner
e. none of the other choices
88. Limited partners are investors who:
a. may not participate in management of the business
b. are liable for all debts of the limited partnership
c. may take an active role in the management of the business
d. all of the other specific choices
e. none of the other choices
89. Limited partners are investors who:
a. must have a net worth of at least $200,000
b. are liable for all debts of the limited partnership
c. may take an active role in the management of the business
d. all of the other specific choices
e. none of the other choices
90. In general, limited partners lose their limited liability status by:
a. being a limited partner in another partnership
b. denying association with the partnership
c. participating in managerial decisions in the partnership
d. being a partner in another partnership or by participating in managerial decisions in the partnership
e. being a partner in another partnership or by participating in managerial decisions in the partnership or by
denying association with the partnership
91. Which of the following is a right of a limited partner in a limited partnership:
a. the right to see the partnership books
b. the right to participate in the dissolution of the business
c. the right to take an active role in managing the business
d. both a and b are rights of a limited partner
e. none of the other specific choices are rights of a limited partner
92. Which of the following is a right of a limited partner in a limited partnership:
a. the right to see the partnership books
b. the right to make hiring decisions
c. the right to take an active role in managing the business
d. both a and b are rights of a limited partner
e. none of the other specific choices are rights of a limited partner
93. Which of the following is a right of a limited partner in a limited partnership:
a. the right to make hiring decisions
b. the right to participate in the dissolution of the business
c. the right to take an active role in managing the business
d. both a and b are rights of a limited partner
e. none of the other specific choices are rights of a limited partner
94. Which of the following is a right of a limited partner in a limited partnership:
a. the right to make hiring decisions
b. the right to give performance reviews to employees
c. the right to take an active role in managing the business
d. both a and b are rights of a limited partner
e. none of the other specific choices are rights of a limited partner
95. Which of the following is not true about the termination of a limited partnership?
a. the bankruptcy of a limited partner does not force termination
b. the business may continue to operate during dissolution
c. creditors‘ rights come before partners’ rights to funds
d. limited and general partners share assets equally at the same time after the creditors are paid
e. all of the other choices are true
96. A limited partnership is usually dissolved by the bankruptcy of:
a. a general partner, but not a limited partner
b. either a general partner or a limited partner
c. a limited partner, but not a general partner
d. the secretary of state
e. neither a general partner nor a limited partner
97. In the final dispersal of the assets of the limited partnership, creditors’ rights:
a. do not precede partners’ rights
b. precede partners’ rights
c. are immaterial
d. precede some precede partners’ rights, but not others
e. only precede general partners‘ rights
98. Unless the limited partnership agreement holds otherwise, when a limited partnership is dissolved the limited
partners receive their share of the profits and their capital contributions:
a. after the general partners get theirs
b. after the general partners, but before the creditors
c. before general partners receive anything
d. before creditors receive anything
e. none of the other choices are correct
99. A is an artificial person, or legal entity, created under state law.
a. corporation
b. limited partnership
c. legal partnership
d. sole proprietorship
e. business
100. A is an artificial person, or legal entity, created under state law.
a. megabusiness
b. limited partnership
c. legal partnership
d. sole proprietorship
e. none of the other choices are correct
101. Coca-Cola, Microsoft and General Motors are all examples of:
a. corporations
b. limited partnerships
c. legal partnerships
d. sole proprietorships
e. none of the other choices are correct
102. Coca-Cola, Microsoft and General Motors are all examples of:
a. joint ventures
b. limited partnerships
c. legal partnerships
d. sole proprietorships
e. none of the other choices are correct
103. The modern corporation was developed:
a. in England in the Middle Ages
b. in Italy during the Renaissance
c. in the United States during the eighteenth century
d. in Germany during the nineteenth century
e. in New York during the early twentieth century
104. The modern corporation was developed:
a. in England in the Middle Ages
b. in Italy during the Renaissance
c. in New York during the early twentieth century
d. in Germany during the nineteenth century
e. none of the other choices
105. A certification of incorporation from the government:
a. gives a business monopoly privileges
b. is necessary for a corporation to be recognized legally
c. must be obtained by all limited partnerships
d. is necessary or a corporation to be recognized legally and must be obtained by all limited partnerships
e. none of the other choices
106. Corporations have existed for centuries, but the modern “liberal” general incorporation statutes were first passed in:
a. the late 1700s
b. the late 1800s
c. the 1930s
d. the 1950s
e. the 1960s
107. Corporations have existed for centuries, but the modern “liberal” general incorporation statutes were first passed in:
a. the late 1700s
b. the 1930s
c. the 1950s
d. the 1960s
e. none of the other choices
108. To create a corporation:
a. articles of incorporation and an application must first be filed with the federal government
b. the federal government issues a certificate of incorporation, which must be filed with an application to do
business in the relevant states
c. the incorporators must hold a public organization meeting, then file articles of incorporation
d. the corporation’s articles of incorporation are filed with the appropriate officer of the state
e. none of the other choices
109. To create a corporation:
a. articles of incorporation and an application must first be filed with the federal government
b. the federal government issues a certificate of incorporation, which must be filed with an application to do
business in the relevant states
c. the incorporators must hold a public organization meeting, then file articles of incorporation
d. the federal government issues a certificate of incorporation, which must be filed with an application to do
business in the relevant states, and the incorporators must hold a public organization meeting, then file articles
of incorporation
e. none of the other choices
110. In general, a corporation’s , along with an application, must be filed with the appropriate state office, along
with payment of a fee to create a corporation.
a. certificate of incorporation
b. proof of funding
c. certificate of credit
d. articles of incorporation
e. documents of incorporation
111. In general, a corporation’s , along with an application, must be filed with the appropriate state office, along
with payment of a fee to create a corporation.
a. certificate of incorporation
b. proof of funding
c. certificate of credit
d. needs of incorporation
e. none of the other choices are correct
112. Today a corporation must be created according to:
a. state law
b. common law
c. the Uniform Incorporation Act
d. the U.P.A.
e. federal statutory provisions
113. The articles of incorporation usually provide all of the following except:
a. name of the corporation
b. names of all shareholders
c. name of the registered agent
d. classes of stock being issued
e. all of the other choices must be provided
114. The articles of incorporation usually include all of the following except:
a. name of the CEO
b. address of the corporation
c. purpose of the business
d. classes of stock to be issued
e. all of the other choices are included
115. The articles of incorporation usually include all of the following except:
a. classes of stock to be issued
b. address of the corporation
c. purpose of the business
d. address of the corporation and the purpose of the business only are included
e. address of the corporation and the purpose of the business and classes of stock to be issued are included
116. Which of the following is usually included in the articles of incorporation:
a. name and address of the corporation
b. name and address of the corporation’s registered agent
c. purpose of the business
d. names and addresses of the incorporators
e. all of the other specific choices are correct