BLW 3013 Business Law module 2
Question and answers rated A+
the management responsibilities clause of a partnership agreement details
how partners will make decisions concerning the partnership. t/f - correct
answer ✔TRUE
you and a friend want to sell utsa tee shirts during all home football games.
you have secured all the appropriate licensing agreements. however, to
mitigate your personal liability, you and your friend create a partnership and
agree that it will dissolve the day after the last home game. may a partnership
be created for such a short period of time? Yes/No - correct answer ✔YES
when you and your friends contribute property and cash to your small
business corporation, you are financing the corporation with equity. T/F -
correct answer ✔TRUE
Which of the following changes in your partnership typically requires a change
in the partnership agreement?
a. addition of a new partner
b. significant change in the structure of the business
c. a partnership agreement may not be changed
d. a and b - correct answer ✔d. a and b
book valuation is used to base the value of shares of a partnership on the
business assets at the time the business was purchased. T/f - correct answer
✔FALSE
, Asset Valuation
your business articles of incorporation are filed with the internal revenue
service where they will be reviewed and approved. T/F - correct answer
✔FALSE
Office of the Secretary of State
the uniform partnership act allows a court to determine how to distribute the
profits and assets of a business when the business partners never sign a
partnership agreement. T/F - correct answer ✔TRUE
Bylaws is the document that details the powers and rights of shareholders,
directors, officers and provides specifics about the time and place of the
annual meeting. etc. T/F - correct answer ✔TRUE
pg 58
you and your partner want to assure that the business will continue in the
event of the death of other partner. an effective method accomplishes this
objective is for you and your business partner to execute which of the
following documents?
a. articles of incorporation
b. bylaws
c. management responsibilities clause
d. cross purchase buy-sell agreement - correct answer ✔d. cross purchase
buy-sell agreement
a disadvantage of an S corporation is double taxation. T/F - correct answer
✔FALSE
Question and answers rated A+
the management responsibilities clause of a partnership agreement details
how partners will make decisions concerning the partnership. t/f - correct
answer ✔TRUE
you and a friend want to sell utsa tee shirts during all home football games.
you have secured all the appropriate licensing agreements. however, to
mitigate your personal liability, you and your friend create a partnership and
agree that it will dissolve the day after the last home game. may a partnership
be created for such a short period of time? Yes/No - correct answer ✔YES
when you and your friends contribute property and cash to your small
business corporation, you are financing the corporation with equity. T/F -
correct answer ✔TRUE
Which of the following changes in your partnership typically requires a change
in the partnership agreement?
a. addition of a new partner
b. significant change in the structure of the business
c. a partnership agreement may not be changed
d. a and b - correct answer ✔d. a and b
book valuation is used to base the value of shares of a partnership on the
business assets at the time the business was purchased. T/f - correct answer
✔FALSE
, Asset Valuation
your business articles of incorporation are filed with the internal revenue
service where they will be reviewed and approved. T/F - correct answer
✔FALSE
Office of the Secretary of State
the uniform partnership act allows a court to determine how to distribute the
profits and assets of a business when the business partners never sign a
partnership agreement. T/F - correct answer ✔TRUE
Bylaws is the document that details the powers and rights of shareholders,
directors, officers and provides specifics about the time and place of the
annual meeting. etc. T/F - correct answer ✔TRUE
pg 58
you and your partner want to assure that the business will continue in the
event of the death of other partner. an effective method accomplishes this
objective is for you and your business partner to execute which of the
following documents?
a. articles of incorporation
b. bylaws
c. management responsibilities clause
d. cross purchase buy-sell agreement - correct answer ✔d. cross purchase
buy-sell agreement
a disadvantage of an S corporation is double taxation. T/F - correct answer
✔FALSE
