BUL 3310 FSU Bailey Exam 4 Study
Guide Questions with Actual Detailed
Answers 2025-2026 Updated.
An important factor to consider in the creation of a business organization is: - Answer D. All
of the above are important factors to consider
Which of the following statements about proprietorships is true? - Answer D. The owner of a
proprietorship is personally liable for all the debts of the proprietorship.
A business organized as a proprietorship may have up to, but not more than, thirty-five owners
True or False? - Answer False
Which business entity has the following characteristics: an informal association of two or more
persons that is formed to accomplish a single business transaction? - Answer A. Joint venture
Nelson and Jack are both avid sailors. When a sailing acquaintance put his older, but still highly
desirable, boat up for sale, Nelson and Jack agreed to pool their resources to buy and fix up the
boat, then sell it and split the profits. This is an example of a ____ . - Answer C. Joint venture
Which of the following statements about the limited partner in a limited partnership is false? -
Answer A. Limited partners may participate fully in the management of the partnership.
A limited partnership must have at least one general partner and one limited partner. True or
False? - Answer True
Investors favor using Limited Partnerships to invest in commercial real estate because they can
use the depreciation of the property as a tax loss. True or False? - Answer True
AMJ Partnership has 3 partners: Amy made a 60,000 capital contribution; May, made a 20,000
capital contribution; and June made a 10,000 capital contribution. The partnership agreement is
silent about how profits will be divided. If the partnership makes 90,000 in profits, how will it be
distributed? - Answer B. 30,000 each to Amy, May and June
If a partnership agreement does not say how losses will be shared, they will be shared - Answer
, Subchapter S corporation will avoid double taxation if which of the following applies? - Answer
A. All the shareholders agree to be taxed as in a partnership
Which of the following statements about the rights and duties of doctors who practice medicine
in a professional corporation is true - Answer D. They are eligible to participate in tax
advantaged pension plans.
What is the limit of shareholders in subchapter S corporations? - Answer B. Thirty-five
Which of the following statements about LLC's is false? - Answer B. There is an extensive
body of law based on court decisions governing LLC's.
States give corporations many rights, among them is the right to sue and the right to own
property in the corporation's name. What do such legal rights collectively constitute for a
corporation? - Answer B. Legal capacity
The owner of a limited liability company (LLC) has unlimited personal liability for the debts of
the LLC. - Answer False
The provisions of the law AND the partnership agreement govern the operations of the
partnership. - Answer True
Sharing in net profits is not prima facie evidence that a partnership exists if the profits were
paid by the partnership - Answer D. All of the above
Frank is a seller of imported pottery. To induce a new wholesaler to sell him goods on credit,
Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed
had no partnership interest and Frank was a sole - Answer C. Estoppel
Which of the following statements is true about a partnership name? - Answer D. Both a and
c
The capital contribution of each partner is a liability to the partnership and must be returned to
the partner when the partnership ends. - Answer True
Guide Questions with Actual Detailed
Answers 2025-2026 Updated.
An important factor to consider in the creation of a business organization is: - Answer D. All
of the above are important factors to consider
Which of the following statements about proprietorships is true? - Answer D. The owner of a
proprietorship is personally liable for all the debts of the proprietorship.
A business organized as a proprietorship may have up to, but not more than, thirty-five owners
True or False? - Answer False
Which business entity has the following characteristics: an informal association of two or more
persons that is formed to accomplish a single business transaction? - Answer A. Joint venture
Nelson and Jack are both avid sailors. When a sailing acquaintance put his older, but still highly
desirable, boat up for sale, Nelson and Jack agreed to pool their resources to buy and fix up the
boat, then sell it and split the profits. This is an example of a ____ . - Answer C. Joint venture
Which of the following statements about the limited partner in a limited partnership is false? -
Answer A. Limited partners may participate fully in the management of the partnership.
A limited partnership must have at least one general partner and one limited partner. True or
False? - Answer True
Investors favor using Limited Partnerships to invest in commercial real estate because they can
use the depreciation of the property as a tax loss. True or False? - Answer True
AMJ Partnership has 3 partners: Amy made a 60,000 capital contribution; May, made a 20,000
capital contribution; and June made a 10,000 capital contribution. The partnership agreement is
silent about how profits will be divided. If the partnership makes 90,000 in profits, how will it be
distributed? - Answer B. 30,000 each to Amy, May and June
If a partnership agreement does not say how losses will be shared, they will be shared - Answer
, Subchapter S corporation will avoid double taxation if which of the following applies? - Answer
A. All the shareholders agree to be taxed as in a partnership
Which of the following statements about the rights and duties of doctors who practice medicine
in a professional corporation is true - Answer D. They are eligible to participate in tax
advantaged pension plans.
What is the limit of shareholders in subchapter S corporations? - Answer B. Thirty-five
Which of the following statements about LLC's is false? - Answer B. There is an extensive
body of law based on court decisions governing LLC's.
States give corporations many rights, among them is the right to sue and the right to own
property in the corporation's name. What do such legal rights collectively constitute for a
corporation? - Answer B. Legal capacity
The owner of a limited liability company (LLC) has unlimited personal liability for the debts of
the LLC. - Answer False
The provisions of the law AND the partnership agreement govern the operations of the
partnership. - Answer True
Sharing in net profits is not prima facie evidence that a partnership exists if the profits were
paid by the partnership - Answer D. All of the above
Frank is a seller of imported pottery. To induce a new wholesaler to sell him goods on credit,
Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed
had no partnership interest and Frank was a sole - Answer C. Estoppel
Which of the following statements is true about a partnership name? - Answer D. Both a and
c
The capital contribution of each partner is a liability to the partnership and must be returned to
the partner when the partnership ends. - Answer True
