chapter 4 forms of ownership

32) a joint venture differs from a partnership in that? A. A joint venture is formed to carry out a single project. B. A joint venture cannot bind the other joint tenants to a contract. C. Parties to a joint venture have rights of survivorship. D. Parties to a joint venture may not be relative.

a joint venture is formed to carry out a single project

24) three women have formed a partnership to purchase real estate. Two of the women want to restrict their liability, naming the third as that the general party. What type of ownership did they create? A. Syndicate. B. General partnership. C. Joint venture D. Limited partnership.

a limited partnership has a general partner or partners, and all other partners are limited partners.

39) a limited liability company? A. May not be organized by anyone under 21 years of age. B. Frees the manager of member of debts or liabilities of the company. C. maybe a corporation or partnership. D. Must include Inc or LTD and its name.

a member or manager of a limited liability company is not liable for its debts, obligations or liabilities. Such a company may be organized by anyone 18 years older and may not be a corporation or partnership.

16) two men want to purchase an investment property as co-owners. If they hold title as joint tenants, will either spouse inherit his share upon his death? A. Yes, because the right of survivorship which extends among joint tenants. B. Yes, because a joint tenant share passes to his heirs upon death. C. No, because the spouses were not named as a joint tenant on the deed. D. No, because join Tendency with a third-party defeats a spouse dower rights

a spouse right of courtesy or Dower is defeated by holding title to property as a joint tenant with another person.

6) X, Y and Z own property as tenants-in-common. X owns 20%, Y owns 30%, and Z owns a 50% interest. Z needs to raise cash, and offer to sell M 25% interest of half of his 50% interest. Why can't Z go through with the sale, even if X and Y oppose it? A. he cannot because tenants-in-common may not dispose of their interest without agreement of all the other tenants in common. B. He can, but he must sell M his entire interest, not just a portion of it. C. A tenant-in-common May dispose of all or part of his interest without the consent of the other tenants in common. D. A tenant-in-common May dispose of all or part of his interest without content of the other tenants in common if he has successfully bought a suit for partition

a tenant-in-common made dispose of all or part of his interest independent of the other tenants and without their permission.

38) a man wants to set up a trust to provide income for his minor children, to take effect after his death. What form of trust would this be? A. Inter vivos trust. B. Testamentary trust. C. General trust. D. Corporate Trust.

a testamentary trust takes effect after the death of his creator.

2) among the advantages of ownership of real property in severalty is? A. Freedom of choice as to the use or disposition of the property. B. The ability to defeat a spouse claim of dower or curtesy rights. C. freedom to avoid special assessments levied by the local government. D. The ability to limit activity on an adjacent property.

an owner of property in severalty has freedom of choice as to use or disposition of the property, but does not necessarily have the ability to defeat a spouse claim of dower or curstesty

15) a married couple on their home as tenants by the entirety with the rights of supervisor ship. Which of the following statements would be true regarding their own ownership? A. Upon death of their spouse, the Survivor automatically becomes a tenant-in-common. B. Each spouse has a disposable interest in the property during the lifetime of the other. C. Should they be divorced, they would become joint tenants in the ownership of the property. D. In Most states, a creditor cannot force the sale of the property unless the Creditor is the Creditor of both spouses

and death the Survivor owns the property in severalty. They do not have disposable interest, and should a tenancy by the entireties be terminated by divorce, The Parting spouse becomes tenant-in-common with one another.

19) a married couple live in the community property state. Which of the following will most likely be considered their community property? A. Property which is inherited by other spouse. B. Property conveyed as a gift to other spouse. C. Property purchase after they were married. D. Property owned by either spouse prior to their marriage.

any property purchased after marriage is treated as community property in states which have community property laws.

31) before investing in a limited partnership, one should? A. acquire copies of the deed to all property one owns. B. Investigate the past performance of the general Partners. C. Divest of interest in all other Partnerships. D. Investigate the other Investments of the limited Partners.

before investing in a limited partnership one should determine whether or not it is suitable for one's personal objectives and investigation the past performance of the general partners.

27) which of the following would sometimes prove to be a negative factor in the corporate form of ownership? A. Limited personal liability. B. liquidity of investment. C. The ability to acquire an ownership interest with small capital investment. D. Tax considerations.

corporate income is taxed to the corporation, and may be taxed as individual income upon disbursement to stockholders.

7) the difficult and disposing of undivided interest and liabilities for debt against the property are regarded as hazards of? A. in severalty ownership. B. Co-ownership. C. Real estate Investment Trust. D. Condominium ownership.

difficulty of disposing of undivided interest and liabilities of debts against the property are hazards of co-ownership, both tendency in common, and Joint tenancy.

35) the possibility of double taxation on income is a negative factor in the? A. Corporate form of ownership. B. Limited partnership form of ownership. C. Major corporations only. D. General partnership form of ownership.

double taxation on income is possible in the corporation form of ownership.

21) under community property law, a husband is considered to be a co-owner in any property purchased from the wife's earnings? A. Even though his name does not appear on the deed. B. If the property is acquired before the marriage with joint funds. C. If the wife name the husband as an heir in her well. D. Only if he is name in the deed

following marriage, a person's earnings are considered to be marital funds, and any property purchase from these earnings will be treated as community property. The husband's name need not appear on the deed.

26) in a general partnership? A. Each partner has limited Financial liability. B. Each partner pays individual taxes on their shares of partnership earnings. C. Only the partnership pays taxes, not individual Partners. D. The financial liability to each partner does not exceed the level of the investment of each in the partnership.

in a general partnership, each partner has unlimited Financial liability, and pays individual taxes on earning from the partnership.

23) in community property States, property not held as community property is designated as? A. Private property. B. Personal property. C. Separate property. D. sole property.

in community property States, property not held as community property is designated as separate property.

17) if tenants by the entireties, barring any other agreement? A. they become tenants in common with each other. B. Divorce does not affect the status of the title to the property. C. The ex-wife takes title in severalty. D. The ex husband takes title in severalty

in the absence of any other agreement, tenants by The entireties Who get divorced become tenants in common with one another.

8) three people are going to purchase an investment property as owners, and will take title as joint tenants. Which of the following statements is correct? A. Each May convey his share to his heirs in his will. B. Each will receive a separate Deed for his shares. C. All will have equal interest in the property. D. Each will enjoy limited responsibilities for depth incurred on the property

joint tenants have equal interest in property, and the right to survivorship, and take title in one document or deed. Joint tenants are fully liable for debts incurred on the property.

29) management of a limited partnership is performed by the? A. Limited partners. B. General Partners. C. Corporate officers. D. Property Management firms.

limited Partnerships are managed by a general partner or Partners. Limited partners have little or no voice in the management decision.

28) an individual investor who is seeking the partnership advantages of capital of aggregation and pass through of prophets, but who wishes to avoid unlimited Financial liability, would join a? A. Joint venture. B. Limited partnership. C. General partnership. D. Association.

limited Partnerships permit the pass-through of profits while limiting the financial liability of limited partners to the amount of their investment.

30) the limited partnership is a popular way to own real estate because of? A. Unlimited liability. B. Minimum management responsibilities. C. Greater control on progress of the investment. D. it's liquidity.

limited liability, minimum management responsibilities, and direct pass-through of prophets have all contributed to the popularity of limited partnership from an ownership

10) all the following are true of joint tenancy except? A. Unities of Time, title, interest, and possession must be presented. B. New joint tenants may be added without forming a new joint tendency. C. Survivorship exist among joint tenants. D. A husband and wife may hold title as joint tenants

new joint tenants may not be a added to an existing joint tenancy without forming a new joint tenancy.

11) M wants to leave her real estate to her nephew Z, but still wants the flexibility to change her mind in the future. She can accomplish his goal with a? A. will naming her nephew as recipient of her real estate. B. Joint tenancy with her nephew. C. tendency in common with her nephew. D. Court-ordered petition.

only by using a will can M retain the flexibility to change your mind later.

34) a business entity owned by stockholders who possess shares of stock as evidence of their ownership is? A. A general partnership. B. A limited partnership. C. A corporation. D. A condominium ownership.

only in corporation do owners possessed shares of stock as evidence of ownership.

1) ownership in severalty occurs when? A. two or more people have identical interest in the same property concurrently. B. Husband and wife share ownership of the same property. C. Property is owned by one person. D. Two or more persons own the same property in any form of title.

ownership in severalty is ownership by one person. This may be an individual person or a partnership, Corporation or other legal entity buying and its name solely

36) protection from personal liability is an advantage of? A. Corporate ownership. B. General partnership ownership. C. Joint tenancy. D. Sole ownership.

protecting from personal liability exists within the corporate form of ownership, but not in a general partnership.

9) the surveying co-owner May automatically inherit the deceased co-owner's shares when property is held as a? A. Tenancy in common. B. Joint tendency. C. Limited partnership. D. Corporation.

right of survivorship exist among joint tenants, but not tenants-in-common, Limited Partnerships, or corporations.

33) which of the following usually offers the most liquid form of property ownership? A. Limited Partnerships. B. Joint Tendencies. C. Sole ownership. D. Stock in a corporation.

shares of stocks are more liquid than sole ownership of real property.

12) if any unit of joint tenancy is broken, the law will regard the estate as? A. A tenancy by entireties. B. community property. C. A tenancy in common. D. An estate in severalty.

should any unit of joint tenancy be broken, the state becomes a tenancy in common.

5) a tenant-in-common may not? A. Claimed a portion of the property for his own use. B. Convey his interest by will. C. Use his shares of the property as collateral for a mortgage loan. D. Sell his share without the agreement of the other tenants.

tenants-in-common hold undivided interest in the entire property. One tenant cannot claim a portion for his own use.

3) all the following are true of a tendency in common except? A. all tenants hold a undivided interest in the entire property. B. Each tenant may have a separate Deed to his / her share, or share One Deed. C. The tenants may dispose of all or parts of their shares without the agreement of the other tenants. D. There is a right of supervision among the tenants.

tendency in common does not have right to survivorship. this ownership has rice to the Heirs for each tenant-in-common.

14) tenancy by the entireties is based upon? A. French colonial law. B. The premise that husband and wife are one legal unit. C. The premise that interest and material property should be based on each partner's contributions to the acquisition D. The community property theories.

the concept of tenancy by the entireties is based upon English law, which treats a husband and wife as one legal unit.

25) in order to hold property in the name of the partnership, a list of Partners must be published in each country and state where the? A. Partnership does Business. B. Partnership owns property. C. Partners reside. D. Partnership owns Investments.

the list of Partners must be published in the country and states where the partnership owns property.

37) the day-to-day operation of a corporation are the responsibilities of it? A. Stockholders. B. Board of directors. C. Partners. D. Corporate officers.

the management policies of a corporation are determined by its board of directors and then implemented by its officers. Stockholders have no management role, but due elect the board of directors. Day-to-day operations are the responsibility of the corporate officers.

13) X, Y and Z only property as joint tenants. Ex wants to sell his interest to M. And the absence of documents creating a new joint tenancy? A. M will become a tenant-in-common with y and z. B. Y, z, and M become tenants-in-common each with 1/3 interest in the property. C. y, z, and M must create a partnership when M acquires X's interest. D. Y, Z, and M become tenants by entireties

the new co-owner (M) will be a tenant-in-common with the remaining joint tenants, Who Remain joint tenants among themselves. M will own 1/3 undivided interest and Y and Z will continue holding a 2/3 undivided interest.

18) the basic concept of community property law is that? A. Husband and wife are merging into one by marriage. B. Husband and wife are equal Partners. C. Husband and wife are separated owners in several D. The husband owns everything in the entirety.

the premise that husband and wife are equal Partners is fundamental to the concept of community property law.

20) after his marriage to W, H took title to real property in severalty, using marital funds to make the purchase. The property is located in a condominium property state. In order for H to sell this property, W must? A. Be given her share as separate property. B. Surrender her down rights in the property. C. Sign the deed as grantor. D. Receive her share of the property by partition.

this property will be treated as community property since it was purchased with marital funds. Both spouses signatures will be required on the deed if it sold.

22) a married couple owns their home as tenants-in-common in a community property State. Upon the husband's death, which of the following will be true? A. The wife will inherit his share through her right of survivorship. B. by will, the husband made devise his shares to anyone. C. The wife's dower rights will be vested immediately. D. The property will belong to the wife in severalty

under community property law, a spouse made devise his or her share to anyone, provided the surviving spouse does not have survivorship rights such as with joint tenancy ownership.

4) two women wish to purchase a condominium unit as co-owners. One woman will hold a 60% interest and the other a 40% interest. Both are single and each one's the other two inherit her share automatically upon death. How can they accomplish this? A. By taking title as tenants-in-common with a 60/40 interest split and naming each other in their retrospective will to inherit that interest upon death. B. By taking title as joint tenants with the right of supervisorship. C. by taking title as a partnership, with a 60/40 split in interest. D. By taking title as joint tenants and naming each other as heirs in their respective wills

whenever the co-owner has unequal shares of ownership, they are tenants in common, and there cannot be survivorship among tenants-in-common, so they meet each other as heirs in the will is necessary to convey the interest on death