BUL 5810 - UNINCORPORATED BUSINESS ASSOCIATIONS EXAM QUESTIONS AND ANSWERS 100% PASS

BUL 5810 - UNINCORPORATED BUSINESS ASSOCIATIONS EXAM QUESTIONS AND ANSWERS 100% PASS A legal entity separate and distinct from its owners referred to as shareholders, and formed by filing articles of incorporation is a: - corporation A partner who has no right to participate in control of the business and who has limited liability is called a: - limited partner In choosing the form in which to conduct business, if ease of formation is the primary concern, the owners would choose a: - general partnership A __________ is an unincorporated business association consisting of at least one general partner and at least one limited partner. - limited partnership Which of the following is the most convincing evidence of a partnership arrangement? a. Two or more persons are co-owners of property used in a business. b. Two or more persons have a written agreement regarding a fundraiser for charity. c. Two or more persons carry on a business for profit, but they have no formal agreement. 2COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED d. Two persons share a joint savings account in which they deposit money and share the interest. - Two or more persons carry on a business for profit, but they have no formal agreement. Which of the following would lack the capacity to become a partner? a. A trust. b. An adjudicated incompetent. c. A corporation - An adjudicated incompetent Which of the following forms of business association may elect that only the partners/members are taxed? a. General partnerships. b. Limited partnership. c. Limited liability company. - All of these!!! A partnership agreement should include all but which one of the following? a. The duties of the partners. b. The capital contribution of the partners. c. The agreement for dividing tax liability of the partnership. d. The division of profits and losses. - The agreement for dividing tax liability of the partnership A partner owes all of the following duties to the partnership except: a. duty of loyalty. b. duty of obedience. 3COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED c. duty of care. d. duty of control. - Duty of Control A partner's interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest. - Changing Order Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business. Jess, a business owner, is not personally liable if: - the business is a corporation and he is a shareholder Arthur, Betty, and Clara each inherit an undivided one-third inte