business law FINAL

A corporation has no constitutional protection against unreasonable searches and seizures.

false

A silent partner is not a real partner?

false

General partners differ from limited partners ONLY in the amount of input they have into partnership decisions?

false

The UPA provides that, unless otherwise agreed, only one partner is entitled to manage the partnership business

false

The UPA provides that, unless otherwise agreed, partners are entitled to compensation for acting in the partnership business

false

A/ an _________ is a person in a position of trust and confidence who has a duty of outmost loyalty and good faith.

fiduciary

Which of the following is UNTRUE of a limited partnership?

partners in limited partnerships must contribute services to the partnership

A _________ is a formal appointment of an agent.

power of attorney

Apple Corporation is classified as:

private

White, Grey, and Green enter into a contract to form a partnership, but the contact says nothing about the sharing of profits and losses.

profits and losses will be shared equally

Which of the following is not a right of a partner in a partnership?

the right of limited liability for the partnership's debts

A corporation can be a partner in partnership?

true

A corporation can have perpetual existence unless otherwise stated in its article of incorporation.

true

A corporation can only be formed by complying with a state incorporation statute.

true

A corporation owned by one person is treated under the law as separate from that person.

true

A limited liability company (LLC) enjoys the tax benefits of a partnership and the same limited liability of a corporation.

true

The IRS allows certain corporations to be treated as partnerships for federal income tax purposes.

true

An agent acts for a/an __________ principal when she appears to be acting on her own behalf, and the third person whom she is dealing has no knowledge that she is an agent.

undisclosed

Which of the following is an example of an agency agreement?

=====

Louis, Mark and Norris are partners in an auto repair business. Recently Mark had a violent argument with his partners and announced, "I quit. I will not be a partner with you guys." What are the legal consequences?

======

Marty and Fred start a lawn service business. Marty invests $25,000 to buy equipment. Fred has no money to invest but agrees to work 50 hours a week. Marty and Fred are legally partners only if:

======

Which of the following would be convincing evidence of a partnership?

======

The instructor for this course is:

Dennis D. Engler

David, a partner in the National Express Mail delivery partnership, negligently drove his delivery truck onto the curb during a rush hour package delivery. Marlene was injured. Against whom can Marlene collect?

National Express Mail partnership

If a partner is silent, then that partner is referred to as:

a partner who does not participate in the management of the partnership

Arthur, Betty, and Clara each inherit an undivided one-third of an apartment complex. Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money. What are they?

a partnership

A/ an _______ is an equitable proceeding for a complete settlement of all partnership affairs.

accounting

This course was:

all of the above

Which of the following are duties imposed upon principals in their relationship with their agents?

all of the above are duties of a partner

Which of the following duties imposed upon partners in their relationship among themselves?

all of the above are duties of a partner

Which of the following is TRUE of a limited partnership?

all of the above are true

Which of the following liabilities of a partnership has the highest priority for payment out of partnership assets?

amount owing to creditors other than partners

The law establishes a test for determining whether a partnership has been formed. The test includes all but which of the following:

an association of two or more persons

Ben opens an Italian restaurant and hires his nephew, Rick, to run the "front end": hire the busboys and waiters, develop work schedules, etc. In return, Ben tells Rick he will pay him 20 percent of the profits. Are Ben and Rick partners?

both a and be are correct

An agent is not normally liable on a contract he makes with a third party on behalf of a/an _____ principal.

disclosed

The transfer of partnership property from the partnership to a partner is known as:

distribution

"Dissolution" of a partnership and "termination" of a partnership are synonymous.

false

Which of the following is NOT a characteristic of the corporate form of doing business?

informal organization

All of the following are characteristics of a corporation EXCEPT:

it is usually managed by its shareholders

A partner who is liable for a firm's debt only to the extent of his own capital contribution is a:

limited partner

The duty of __________ requires the agent to act in the principal's affairs only as authorized by the principal and to obey all reasonable instructions and directions given by the principal.

obedience

Absent an agreement otherwise, upon dissolution and after payment of partnership creditors, a partner is entitled to which of the following?

repayment of his capital contribution and a share of the profits equal to that each of the other partners

A principal is liable for the acts of its agent(s) under the doctrine of:

respondeat superior

A partner is dormant if he/she is a:

silent and secret partner

Which of the following choices of entity carries the greatest risk of liability?

sole proprietorship ====

Under which of the following provisions of the U.S. Constitution is a corporation not a "person"?

the Fifth Amendment privilege against self-incrimination

Corporate officers are appointed by:

the directors

Anita and Betty agree to form a partnership. Anita agrees to contribute $30,000 in assets and to devote one-half time to the partnership. Betty is to contribute $10,000 and to devote full time to the partnership. How will Anita and Betty share in the division of net income or net loss, assuming there is no written partnership provision on the distribution of profits?

they will share profits and losses equally

Roberts, Smith, and Thomas have been partners for twenty years. The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner. Robert, Smith, and Thomas are engaged in a process called:

winding up

The process of liquidating a partnership is known as?

winding up