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Chapter Quiz
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1
Partners have apparent authority when they enter into transactions for the partnership.
A)True
B)False
2
Partners have a right of indemnification for any expenses they incur on behalf of the partnership business.
A)True
B)False
3
Unless there is some understanding otherwise, partners share profits according to their proportional capital contribution to the partnership.
A)True
B)False
4
Unless there is some understanding otherwise, partners share losses equally.
A)True
B)False
5
Partners have unlimited personal liability to creditors of the partnership.
A)True
B)False
6
Normally, a partner who commits an intentional tort may cause the partnership and the other partners to be liable.
A)True
B)False
7
When a partner commits a crime during the course and scope of his partnership duties:
A)He is liable.
B)The partnership may be criminally liable.
C)The other partners may be criminally liable.
D)All of the above
8
For ordinary decisions of the partnership:
A)A majority vote of all partners is required in order to take action.
B)A unanimous vote of all partners is required in order to take action.
C)A two-thirds vote of all partners is required in order to take action.
D)A super majority vote of all partners is required in order to take action.
9
Silent partners:
A)have limited liability for any actions of the partnership.
B)normally contribute capital to the partnership, but are relieved of their duty to serve.
C)normally serve the partnership, but rarely contribute capital to it.
D)are not general partners.
10
A written partnership agreement:
A)is required in order for a partnership to legally transact business.
B)may modify the rules of management from that of the RUPA.
C)allows partners to have a clear understanding of the obligations, rights, and duties of each partner.
D)Both B and C
E)All of the above





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