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1
A limited partnership is generally divided into two classes of owners: general partners and limited partners.
A)True
B)False
2
If a limited partner engages in management and control of the business, he will usually become liable to third party creditors of the limited partnership.
A)True
B)False
3
A limited liability company (LLC) is similar to a partnership except that an LLC pays federal income tax.
A)True
B)False
4
A limited liability limited partnership has limited liability for all partners, including general partners.
A)True
B)False
5
Under certain circumstances, a limited partner may use her surname in the name of the business.
A)True
B)False
6
Limited partnerships generally share profits and losses according to each partner's capital contribution.
A)True
B)False
7
In a limited partnership:
A)The limited partners are fiduciaries of the business, but the general partners are not.
B)Each limited partner has unlimited liability for the obligations of the business.
C)The individual partners report their share of the profits or losses on their own individual tax returns. The limited partnership itself pays no federal income tax.
D)The limited partners usually manage and operate the business.
8
If a person believes that she is a limited partner in a limited partnership, but the limited partnership does not get formed:
A)The limited partner will ordinarily be liable as if she were a general partner.
B)The limited partner may escape liability if she either causes the limited partnership certificate to be filed or withdraws from future equity participation in the business.
C)Regardless of what mitigating steps the limited partner takes, she will remain liable to third parties for any obligations that the business incurs.
D)Both A and B
E)All of the above
9
All of the following are causes of a dissolution of a limited partnership except:
A)the happening of an event stated in the limited partnership agreement.
B)withdrawal of a limited partner.
C)expiration of the time stated in the limited partnership certificate.
D)court order.
10
A limited partnership is often used:
A)in tax shelter ventures.
B)real estate investments.
C)oil and gas investments.
D)All of the above





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