BUL 5810 Study Guide Exam
Questions and Answers 100% Pass
A corporation may not be a partner in a partnership. - ✔✔false
Under the common law, a partnership is generally considered to be a legal entity rather
than an
aggregate of individuals. - ✔✔False
Partners may elect to have the partnership not be a separate taxable entity, so that only
the
partners are taxed. - ✔✔True
A general partnership may be formed for a charitable purpose. - ✔✔False
Tori and Margaret agree to form a partnership. The partnership contract between Tori
and
Margaret does not have to be in writing in order to be enforceable in the courts. -
✔✔True
What is considered "partnership property" is determined primarily by the partners'
intentions. - ✔✔True
Sharing of gross returns establishes a partnership. - ✔✔False
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
,In some corporations, only the shareholders are taxed; in others, both the corporation as
an entity
is taxed and the shareholders are taxed as well. - ✔✔true
A partner cannot assign his interest in the partnership without dissolving the
partnership. - ✔✔false
Under the RUPA, no person may become a member of a partnership without the
consent of all
the partners. - ✔✔True
A partnership name may be the name of all the partners, some of them or any one of
them. - ✔✔True
Under the RUPA, a partnership agreement may be written or oral, but not implied. -
✔✔False
The UPA was amended in 2016 as part of the Bring Harmony to Business Act. -
✔✔False
A limited liability company (LLC) provides limited liability to all of its owners and
permits all of
its owners to participate in management. - ✔✔true
The form of business association known as a partnership can be traced to ancient
Babylonia and
classical Greece and was used in England during the Middle Ages. - ✔✔True
Corporations today outnumber unincorporated business associations. - ✔✔false
All states have authorized the formation of limited liability companies - ✔✔true
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
,All 50 states have adopted the Revised Uniform Partnership Act. - ✔✔false
The trustees are generally not personally liable for the debts of a business trust. -
✔✔False
Because the statute of frauds does not apply expressly to a contract for the formation of
a
partnership, usually no writing is required to create the relationship. - ✔✔True
A joint venture is necessarily of short duration. - ✔✔False
A sole proprietorship is formed without any formality, is not a separate taxable entity,
is dissolved upon death of the owner, and has unlimited liability for the owner. -
✔✔True
The newly formed Tavin and Shane Partnership cannot commence business until it
meets its state's required minimum amount of capitalization. - ✔✔False
The proportion in which partners bear losses depends upon their relative capital
contributions. - ✔✔False
In all types of business entities, the owners can fully share in the management and
control of the
business. - ✔✔False
Income from some types of business entities is taxed twice. - ✔✔True
General partnerships are frequently used in finance, accounting, real estate, and law. -
✔✔True
If no specific agreement exists, the partners bear losses in the same proportion in which
they
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 3
, share profits. - ✔✔True
The choice of the most appropriate form of business enterprise cannot be determined
without
considering the particular circumstances of the owners. - ✔✔true
A judicial lien against a partner's transferable interest in a partnership is known as a(n):
(A) legal aggregate.
(B) delegation of assets.
(C) charging order.
(D) assignment. - ✔✔(C) charging order.
A partner who has no right to participate in control of the business and who has limited
liability
is a:
(A) general partner.
(B) nominal partner.
(C) secret partner.
(D) limited partner. - ✔✔(D) limited partner.
Which of the following is NOT an advantage of a partnership?
(A) Partners' income taxes may be less than the income taxes would be on a corporation.
(B) Each partner has limited liability.
(C) It is possible to bring together more managerial skills than in a sole proprietorship.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 4
Questions and Answers 100% Pass
A corporation may not be a partner in a partnership. - ✔✔false
Under the common law, a partnership is generally considered to be a legal entity rather
than an
aggregate of individuals. - ✔✔False
Partners may elect to have the partnership not be a separate taxable entity, so that only
the
partners are taxed. - ✔✔True
A general partnership may be formed for a charitable purpose. - ✔✔False
Tori and Margaret agree to form a partnership. The partnership contract between Tori
and
Margaret does not have to be in writing in order to be enforceable in the courts. -
✔✔True
What is considered "partnership property" is determined primarily by the partners'
intentions. - ✔✔True
Sharing of gross returns establishes a partnership. - ✔✔False
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
,In some corporations, only the shareholders are taxed; in others, both the corporation as
an entity
is taxed and the shareholders are taxed as well. - ✔✔true
A partner cannot assign his interest in the partnership without dissolving the
partnership. - ✔✔false
Under the RUPA, no person may become a member of a partnership without the
consent of all
the partners. - ✔✔True
A partnership name may be the name of all the partners, some of them or any one of
them. - ✔✔True
Under the RUPA, a partnership agreement may be written or oral, but not implied. -
✔✔False
The UPA was amended in 2016 as part of the Bring Harmony to Business Act. -
✔✔False
A limited liability company (LLC) provides limited liability to all of its owners and
permits all of
its owners to participate in management. - ✔✔true
The form of business association known as a partnership can be traced to ancient
Babylonia and
classical Greece and was used in England during the Middle Ages. - ✔✔True
Corporations today outnumber unincorporated business associations. - ✔✔false
All states have authorized the formation of limited liability companies - ✔✔true
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
,All 50 states have adopted the Revised Uniform Partnership Act. - ✔✔false
The trustees are generally not personally liable for the debts of a business trust. -
✔✔False
Because the statute of frauds does not apply expressly to a contract for the formation of
a
partnership, usually no writing is required to create the relationship. - ✔✔True
A joint venture is necessarily of short duration. - ✔✔False
A sole proprietorship is formed without any formality, is not a separate taxable entity,
is dissolved upon death of the owner, and has unlimited liability for the owner. -
✔✔True
The newly formed Tavin and Shane Partnership cannot commence business until it
meets its state's required minimum amount of capitalization. - ✔✔False
The proportion in which partners bear losses depends upon their relative capital
contributions. - ✔✔False
In all types of business entities, the owners can fully share in the management and
control of the
business. - ✔✔False
Income from some types of business entities is taxed twice. - ✔✔True
General partnerships are frequently used in finance, accounting, real estate, and law. -
✔✔True
If no specific agreement exists, the partners bear losses in the same proportion in which
they
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 3
, share profits. - ✔✔True
The choice of the most appropriate form of business enterprise cannot be determined
without
considering the particular circumstances of the owners. - ✔✔true
A judicial lien against a partner's transferable interest in a partnership is known as a(n):
(A) legal aggregate.
(B) delegation of assets.
(C) charging order.
(D) assignment. - ✔✔(C) charging order.
A partner who has no right to participate in control of the business and who has limited
liability
is a:
(A) general partner.
(B) nominal partner.
(C) secret partner.
(D) limited partner. - ✔✔(D) limited partner.
Which of the following is NOT an advantage of a partnership?
(A) Partners' income taxes may be less than the income taxes would be on a corporation.
(B) Each partner has limited liability.
(C) It is possible to bring together more managerial skills than in a sole proprietorship.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 4
