BLS 112 Exam #1 multichoice Solved
100% Correct
1) The ________ requires partners to undertake their share of responsibility for running
the day-to-day
operations of the partnership business.
A) duty to act within actual authority
B) duty to serve
C) duty of care
D) duty to account - ANSWER-B) duty to serve
1) A partner of a partnership firm should make every effort to make decisions that are in
the best
interest of the firm. This is related to the concept of ________.
A) duty to serve
B) duty to act within actual authority
C) duty of care
D) duty to account - ANSWER-C) duty of care
1) Partners are not liable to their partnership for losses resulting from:
A) gross negligence.
B) reckless conduct.
C) intentional violation of the law.
D) honest errors in judgment. - ANSWER-D) honest errors in judgment.
1) Which of the following is true about implied authority?
A) It is the sole determinant of a partner's actual authority.
B) It is determined with reference to what is usual business for partnerships of the same
general type.
C) It exists because it reasonably appears to a third party that a partner has authority to
do an act.
D) It may contradict a partner's express authority. - ANSWER-B) It is determined with
reference to what is usual business for partnerships of the same general type.
1) Together, express and implied authority constitute ________.
A) fixed authority
B) actual authority
C) apparent authority
D) traditional authority - ANSWER-B) actual authority
1) Which of the following causes a dissociation of a partnership?
A) Withdrawal of a partner from a partnership at will
B) Three partners disagreeing on a matter in the ordinary course of business
C) A partner being provided his partnership interest
, D) Addition of a partner to the partnership - ANSWER-A) Withdrawal of a partner from a
partnership at will
1) Which of the following causes dissociation?
A) A partner's transfer of his transferable partnership interest
B) A creditor's obtaining a charging order
C) A partner's wrongful conduct materially affecting the partnership business
D) The addition of a new partner to a partnership - ANSWER-C) A partner's wrongful
conduct materially affecting the partnership business
1) Which of the following is a wrongful dissociation?
A) A partner retires at age 70 when the partnership agreement allows partners to retire
at age 60.
B) A partner assigns his partnership assets to a personal creditor.
C) A judicial dissociation due to a partner's persistent and substantial use of partnership
property for his
own benefit.
D) Death of a partner. - ANSWER-C) A judicial dissociation due to a partner's persistent
and substantial use of partnership property for his
own benefit.
1) Which of the following is true about a wrongfully dissociated partner?
A) He may perform the winding up.
B) He may demand the partnership be dissolved.
C) He is not entitled to the value of any of his partnership interest.
D) He is entitled to his share of the partnership interest, minus the damages he caused
the partnership. - ANSWER-D) He is entitled to his share of the partnership interest,
minus the damages he caused the partnership.
1) To avoid winding up:
A) a unanimous vote of all partners, who have not wrongfully dissociated, is necessary
to continue
business.
B) two-thirds majority of partners wanting to continue business is necessary.
C) the court has to pass judgment to continue business.
D) the remaining partners must file a continuing statement with the public office. -
ANSWER-A) a unanimous vote of all partners, who have not wrongfully dissociated, is
necessary to continue
business.
2) Which of the following is an advantage of a sole proprietorship?
A) Owners of sole proprietorships can raise a lot of capital quickly for expansion
purposes.
B) The owner of a sole proprietorship has complete control over the business.
C) The sole proprietorship's existence does not depend entirely upon the sole
proprietor.
100% Correct
1) The ________ requires partners to undertake their share of responsibility for running
the day-to-day
operations of the partnership business.
A) duty to act within actual authority
B) duty to serve
C) duty of care
D) duty to account - ANSWER-B) duty to serve
1) A partner of a partnership firm should make every effort to make decisions that are in
the best
interest of the firm. This is related to the concept of ________.
A) duty to serve
B) duty to act within actual authority
C) duty of care
D) duty to account - ANSWER-C) duty of care
1) Partners are not liable to their partnership for losses resulting from:
A) gross negligence.
B) reckless conduct.
C) intentional violation of the law.
D) honest errors in judgment. - ANSWER-D) honest errors in judgment.
1) Which of the following is true about implied authority?
A) It is the sole determinant of a partner's actual authority.
B) It is determined with reference to what is usual business for partnerships of the same
general type.
C) It exists because it reasonably appears to a third party that a partner has authority to
do an act.
D) It may contradict a partner's express authority. - ANSWER-B) It is determined with
reference to what is usual business for partnerships of the same general type.
1) Together, express and implied authority constitute ________.
A) fixed authority
B) actual authority
C) apparent authority
D) traditional authority - ANSWER-B) actual authority
1) Which of the following causes a dissociation of a partnership?
A) Withdrawal of a partner from a partnership at will
B) Three partners disagreeing on a matter in the ordinary course of business
C) A partner being provided his partnership interest
, D) Addition of a partner to the partnership - ANSWER-A) Withdrawal of a partner from a
partnership at will
1) Which of the following causes dissociation?
A) A partner's transfer of his transferable partnership interest
B) A creditor's obtaining a charging order
C) A partner's wrongful conduct materially affecting the partnership business
D) The addition of a new partner to a partnership - ANSWER-C) A partner's wrongful
conduct materially affecting the partnership business
1) Which of the following is a wrongful dissociation?
A) A partner retires at age 70 when the partnership agreement allows partners to retire
at age 60.
B) A partner assigns his partnership assets to a personal creditor.
C) A judicial dissociation due to a partner's persistent and substantial use of partnership
property for his
own benefit.
D) Death of a partner. - ANSWER-C) A judicial dissociation due to a partner's persistent
and substantial use of partnership property for his
own benefit.
1) Which of the following is true about a wrongfully dissociated partner?
A) He may perform the winding up.
B) He may demand the partnership be dissolved.
C) He is not entitled to the value of any of his partnership interest.
D) He is entitled to his share of the partnership interest, minus the damages he caused
the partnership. - ANSWER-D) He is entitled to his share of the partnership interest,
minus the damages he caused the partnership.
1) To avoid winding up:
A) a unanimous vote of all partners, who have not wrongfully dissociated, is necessary
to continue
business.
B) two-thirds majority of partners wanting to continue business is necessary.
C) the court has to pass judgment to continue business.
D) the remaining partners must file a continuing statement with the public office. -
ANSWER-A) a unanimous vote of all partners, who have not wrongfully dissociated, is
necessary to continue
business.
2) Which of the following is an advantage of a sole proprietorship?
A) Owners of sole proprietorships can raise a lot of capital quickly for expansion
purposes.
B) The owner of a sole proprietorship has complete control over the business.
C) The sole proprietorship's existence does not depend entirely upon the sole
proprietor.
