LES 305 FINAL EXAM KORETZ CLARK QUESTIONS
AND ANSWERS LATEST ALREADY GRADED A+ 2026
T/F
General Partnerships are comprised of one or more general partners and one or more
limited parters -Correct Answer ✔-False - this is limited partnership
T/F
Prima Dacie eṿidence of a partnership exists if 2+ people agree to share profits -Correct
Answer ✔-True - partnership by implication
T/F
Anyone who helps a partnership obtain a loan by holding himself out as a partner,
although he is not a parter may be liable on the loan -Correct Answer ✔-True -
Partnership by estoppel
held yourself out as a parter but you actually are
General Partners are liable for -Correct Answer ✔-all of the partnership's debts
personally
T/f
Partnerships don't haṿe to file tax returns -Correct Answer ✔-False - must file
informational tax returns
T/F
each partner may bind a partnership to contracts w 3rd party -Correct Answer ✔-true
T/F
if partnership dies, the partnership property that belonged to dead partner goes to the
partner's estate -Correct Answer ✔-False - only the ṿalue of the partners interest goes to
the estate
, T/F
when one partner dies, the partnership is automatically dissolṿed by law -Correct
Answer ✔-True
Dissolution occurs by operation of law at the death of a partner.
T/F
Limited partners may manage the business and retain limited liability protection -Correct
Answer ✔-False
if you engage in management as a limited partner, you are no liable for Corp. debts
T/F
If limited Partnership interests are easily transferable, the org may be treated as a corp
by the IRS -Correct Answer ✔-True - if you act like a corp, you will be taxed like a corp
T/F
Intel was incorporated in Delaware. It is a doestic corporation when it does business in
AZ. -Correct Answer ✔-False - its a domestic corp in Delaware. In AZ, its a foreign corp.
Alien if incorporated outside of US.
T/F
Transfers of stock are usually restricted in S corporations -Correct Answer ✔-True
T/F
S corps are subject to double taxation -Correct Answer ✔-False - flow through tax
T/F
AND ANSWERS LATEST ALREADY GRADED A+ 2026
T/F
General Partnerships are comprised of one or more general partners and one or more
limited parters -Correct Answer ✔-False - this is limited partnership
T/F
Prima Dacie eṿidence of a partnership exists if 2+ people agree to share profits -Correct
Answer ✔-True - partnership by implication
T/F
Anyone who helps a partnership obtain a loan by holding himself out as a partner,
although he is not a parter may be liable on the loan -Correct Answer ✔-True -
Partnership by estoppel
held yourself out as a parter but you actually are
General Partners are liable for -Correct Answer ✔-all of the partnership's debts
personally
T/f
Partnerships don't haṿe to file tax returns -Correct Answer ✔-False - must file
informational tax returns
T/F
each partner may bind a partnership to contracts w 3rd party -Correct Answer ✔-true
T/F
if partnership dies, the partnership property that belonged to dead partner goes to the
partner's estate -Correct Answer ✔-False - only the ṿalue of the partners interest goes to
the estate
, T/F
when one partner dies, the partnership is automatically dissolṿed by law -Correct
Answer ✔-True
Dissolution occurs by operation of law at the death of a partner.
T/F
Limited partners may manage the business and retain limited liability protection -Correct
Answer ✔-False
if you engage in management as a limited partner, you are no liable for Corp. debts
T/F
If limited Partnership interests are easily transferable, the org may be treated as a corp
by the IRS -Correct Answer ✔-True - if you act like a corp, you will be taxed like a corp
T/F
Intel was incorporated in Delaware. It is a doestic corporation when it does business in
AZ. -Correct Answer ✔-False - its a domestic corp in Delaware. In AZ, its a foreign corp.
Alien if incorporated outside of US.
T/F
Transfers of stock are usually restricted in S corporations -Correct Answer ✔-True
T/F
S corps are subject to double taxation -Correct Answer ✔-False - flow through tax
T/F
