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Exam 32: All Forms of Partnership

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Question 21

True/False

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Each partner in a partnership has the right to full and complete information concerning the conduct of all aspects of partnership business.

A) True
B) False

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Question 22

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A partner always has the power and the right to dissociate from the partnership.

A) True
B) False

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Question 23

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A partnership ends if one partner dissociates from the firm.

Any event that makes its unlawful for a partnership to continue its business will result in dissolution.

On a partner's dissociation, his or her duty of loyalty to the partnership ends.

Rick and Sandy are limited partners in Total Profit Enterprises, a limited part?ner?ship. To avoid personal liability for partnership obligations, they must not

An oral agreement to form a partnership can never be enforced.

Corbin, a partner in Doctors Medical Clinic, applies for a loan with Evermore Bank allegedly on Doctors' behalf but without the authorization of the other partners. Evermore knows that Corbin is not authorized to take out the loan. Corbin defaults on the loan. Liability for its unpaid amount is imposed on

Connie, Drew, and Ellen are the general partners of Foreign Auto Repair, a lim?ited partner?ship. Connie dies. The partnership can

Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

For federal income tax purposes, a partnership is not a tax-paying entity.

International Exports, L.P., is a limited partnership, with $100,000 in de?clared but unpaid profits. International's creditors include Friendly Credit Corporation for $5,000 and Gwen, one of International's limited partners, also for $5,000. When Harry, one of International's general partners, de?cides to retire, the other general partners vote to liquidate and dissolve the firm. The limited partners, who are not asked their opinions, want Interna?tional to continue in business and file a suit against the general partners to compel this result. Can the court order International to continue? If not, what is the priority of the distribution of International's assets on its dissolution?

Hollister and Gladys do business as partners in Frothy Confections. For federal income tax purposes, Frothy Confections would be treated as

A third party cannot sue one of the partners of a partnership without suing all of the partners of the partnership.

In a general partnership, all partners have equal rights in managing the partnership.

Edgar, Jon and Phoebe do business as Reliable Movers. Phoebe develops a debilitating illness and can no longer work. Phoebe

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Kathy and John decide to form a partnership to sell fish food to local fish farms for the next five years. To be enforceable under the Statute of Frauds, the partnership agreement

Lucy is a limited partner in Metro Contractors, a limited partnership, which cannot pay its debts. Lucy is personally liable for the debts

If a partnership's liabilities are greater than its assets, the partners bear the losses.