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1
If a creditor obtains a judgment against a person who also happens to be a partner in a partnership, the creditor may be able to attach that person's interest in the partnership through a charging order.
A)True
B)False
2
A limited liability partnership has at least one general partner and at least one limited partner.
A)True
B)False
3
The entity theory of partnership says that, in certain situations, the business has a separate and distinct existence from the individual partners.
A)True
B)False
4
An assignment of a partnership interest usually occurs when a creditor forcefully obtains rights in a partner's interest in that partnership.
A)True
B)False
5
Two or more people who appear to be partners may create liability for one another even if they are not actually partners.
A)True
B)False
6
A sole proprietorship is an unincorporated association that has only one owner; and the business is nothing more than an extension of that owner.
A)True
B)False
7
All of the following are true regarding a corporation except:
A)It has officers, directors, and shareholders.
B)It is a legal entity separate and apart from its owners.
C)In all circumstances, a corporation's profits are "double taxed" at the corporate level and at the individual shareholder level.
D)Shareholders generally enjoy limited liability for the debts of the business.
8
A partnership:
A)is an association of two or more persons.
B)involves individuals who co-own the business.
C)requires an intent to make a profit.
D)All of the above
9
In order for an individual to be liable as a purported partner,
A)that individual must either hold himself out or allows another person to hold himself out as a partner of another.
B)the third party need not incur any damage.
C)the third party must reasonably rely on the appearance of a partnership.
D)Both A and C
10
A limited liability company:
A)combines the nontax advantages of corporations with the favorable tax treatment of partnerships.
B)issues shares to owners that are generally traded on a public exchange.
C)has a manager who has unlimited liability for the debts of the organization.
D)exist only in two of the fifty states.





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