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| 1 | |
A __________ is an association of two or more persons to carry on as co-owners a business for profit. |
| | A) | Sole proprietorship |
| | B) | Corporation |
| | C) | Partnership |
| | D) | Cooperative |
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| 2 | |
A partnership has all of the following characteristics except which of the following? |
| | A) | Voluntary and consensual relationship |
| | B) | Engaged in numerous business transactions over a period of time |
| | C) | Formed to make a profit |
| | D) | Owners do not manage the business |
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| 3 | |
A written agreement that creates a partnership is called the __________ of partnership. |
| | A) | Chronicles |
| | B) | Confederation |
| | C) | Certificate |
| | D) | Articles |
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| 4 | |
If a non-partner has represented himself or herself as a partner and a third party reasonably relies on this information to his or her detriment, the non-partner can be held liable for the third party's damages. This is known as a partnership by __________. |
| | A) | Consent |
| | B) | Default |
| | C) | Estoppel |
| | D) | Implication |
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| 5 | |
Which of the following is not a partner right? |
| | A) | Right to compensation |
| | B) | Right to inspect partnership books |
| | C) | Right to an accounting whenever another partner fails to disclose a profit or benefit he/she received from the partnership |
| | D) | Right to an accounting whenever circumstances render an accounting just and reasonable |
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| 6 | |
If a partner acts with authority specified in the partnership and establishes an agreement in which he/she binds the partnership to the agreement, the partner is said to have acted with __________ authority. |
| | A) | Actual |
| | B) | Implied |
| | C) | Inferred |
| | D) | Professional |
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| 7 | |
According to the Uniform Partnership Act (UPA), if a partnership is liable, each partner has __________ personal liability. |
| | A) | Qualified |
| | B) | Conditional |
| | C) | Unlimited |
| | D) | Limited |
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| 8 | |
__________ and __________ liability means that a third party can choose to sue all partners together in one lawsuit, or each partner separately. |
| | A) | Absolute, unqualified |
| | B) | Conditional, limited |
| | C) | Joint, several |
| | D) | Tort, criminal |
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| 9 | |
When a partnership adds another partner, the new partner assumes __________ liability for any obligations that occurred before the partner was added. |
| | A) | Absolute |
| | B) | Unconditional |
| | C) | Limited |
| | D) | Separate |
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| 10 | |
Just as the original Uniform Partnership Act governs partnerships in the absence of an express agreement, the __________ Uniform Partnership Act (__________) has significantly changed several laws that relate to partnerships. |
| | A) | Revised; RUPA |
| | B) | Amended; AUPA |
| | C) | Modified; MUPA |
| | D) | Supplemental; SUPA |
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