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BUS-311 Business law Questions with Detailed
Verified Answers
Sole proprietorship
Ans: Owner is the business
-not a separate legal entity
-most common business is US
General partnership
Ans: Two or more people
-for profit only
-very unstable- anyone leaves the partnership, the whole business falls apart
Entity theory of partnership
Ans: Partnerships are looked at as separate entities
Uniform partnership act
Ans: Most states have adopted these rules and regulations
-covers problems that arise in the formation, operation and dissolution of ordinary
partnerships
Duties Among Partners
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Ans: -Duty of loyalty
-Duty of information
-Duty of obedience
-Duty of care
Duty of loyalty
Ans: -A duty that a partner owes not to act adversely to the interests of the
partnership
-the interests of the business comes first
Breaching of the duty of loyalty
Ans: -self dealing
-usurping an opportunity
-competing with the partnership
-make secret profits
-disclosing confidential information
-Misusing property
Duty of care
Ans: Negligence
Duty of information
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Ans: Sharing whatever relevant information u possess
Duty of obedience
Ans: Following whatever is appropriate under the rules of the company
Tort liability
Ans: General partnerships- everyone is liable for an injury from a third party (sued)
Joint and several liability
Ans: Each partner is fully liable for whatever injury there is- making up the difference
of the partners who can't pay for whatever reason
Contract liability
Ans: Same rule regarding torts
dissolution of general partnership
Ans: The partnership ends (not the business ends!)
Winding up general partnership
Ans: Process by which a partnership ends - settling up among the partners - may not
distribute money, but use it for a business venture attached to old one
Order of distributing assets general partnership
© Get it right 2025 Getaway - Stuvia US All rights reserved
BUS-311 Business law Questions with Detailed
Verified Answers
Sole proprietorship
Ans: Owner is the business
-not a separate legal entity
-most common business is US
General partnership
Ans: Two or more people
-for profit only
-very unstable- anyone leaves the partnership, the whole business falls apart
Entity theory of partnership
Ans: Partnerships are looked at as separate entities
Uniform partnership act
Ans: Most states have adopted these rules and regulations
-covers problems that arise in the formation, operation and dissolution of ordinary
partnerships
Duties Among Partners
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: -Duty of loyalty
-Duty of information
-Duty of obedience
-Duty of care
Duty of loyalty
Ans: -A duty that a partner owes not to act adversely to the interests of the
partnership
-the interests of the business comes first
Breaching of the duty of loyalty
Ans: -self dealing
-usurping an opportunity
-competing with the partnership
-make secret profits
-disclosing confidential information
-Misusing property
Duty of care
Ans: Negligence
Duty of information
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: Sharing whatever relevant information u possess
Duty of obedience
Ans: Following whatever is appropriate under the rules of the company
Tort liability
Ans: General partnerships- everyone is liable for an injury from a third party (sued)
Joint and several liability
Ans: Each partner is fully liable for whatever injury there is- making up the difference
of the partners who can't pay for whatever reason
Contract liability
Ans: Same rule regarding torts
dissolution of general partnership
Ans: The partnership ends (not the business ends!)
Winding up general partnership
Ans: Process by which a partnership ends - settling up among the partners - may not
distribute money, but use it for a business venture attached to old one
Order of distributing assets general partnership
© Get it right 2025 Getaway - Stuvia US All rights reserved
