LAW 3220 Final-Chapter 13

A general partnership is composed of ______.

at least two general partners and no limited partners

Which of the following are elements of a general partnership?

-Association of two or more people. -Co-ownership and co-management of a business.

Which of the following are not true about withdrawal under the RULPA? I. A general partner may always withdraw at any time. II. The withdrawal of a general partner does not automatically result in dissolution of the partnership. III. Withdrawal of a general partner triggers winding up. IV. Limited partners may withdraw upon 30 days notice to the other partners.

-III. Withdrawal of a general partner triggers winding up. -IV. Limited partners may withdraw upon 30 days notice to the other partners..

What is the most important factor in choosing a business entity?

-Taxation -Capitalization -Liability

Which of the following are true about withdrawal under the RULPA? I. A general partner may always withdraw at any time. II. The withdrawal of a general partner does not automatically result in dissolution of the partnership. III. Withdrawal of a general partner triggers winding up. IV. Limited partners may withdraw upon 30 days notice to the other partners.

I. A general partner may always withdraw at any time., II. The withdrawal of a general partner does not automatically result in dissolution of the partnership.

Which of the following is true about a limited partnership?

It has at least one general partner and at least one limited partner.

Which of the following entities is possible for a business with four principals?

Partnership, Limited liability company, Corporation

Those with ownership interests in a business entity are called which of the following terms?

Principals

Boswell is a sole proprietor and signs a five-year lease for office space with Roberts. Boswell defaults on the lease. Roberts obtains a judgment against Boswell for $100,000. Boswell's business is out of assets. Which of the following is true?

Roberts may execute the judgment against Boswell's personal assets.

Which of the following entities is possible for a business with only one principal?

Sole Proprietorship, Corporation

Lewis wishes to break off from Clarke Company and form his own business with 100 percent ownership for himself. Which of the following forms of entity are available to Lewis for his new business?

Sole proprietorship, Corporation

A limited partnership is composed of ______.

at least one general partner and at least one limited partner

General partners have ________ liability for any debts and liabilities related to operation of the partnership.

joint and several

The RUPA imposes ___________ liability on general partners for debts and liabilities of the partnership.

joint and several

A sole proprietorship is the easiest single-person entity to form and maintain. However, the biggest disadvantage is...

lack of protection for personal assets from business liabilities

The chief drawback to the sole proprietorship form of entity is _____________.

lack of protection for personal assets from business liabilities