BLAW Gleim Section 30, 31, and 32
Final Exam Questions Fully Solved
2025-2026.
which of the following statements about the form of a general partnership agreement is true? -
Answer it must be in writing if the partnership is to last for longer than 1 year.
B approached L and proposed they form a partnership to exploit a profitable idea of B's. L
declined, citing the risk of unlimited liability. B then proposed that L lend B $50,000 and that B
go into the business as a sole proprietor. L would receive half the profits and the right to veto
any of B's decisions. The debt would have a long-term maturity date to facilitate operation of
the business during its development stage. If L accepts the above proposition, the likely result is
that - Answer B and L have formed a partnership even if they did not intend to
bonnie was a very bright and mature 16-year-old who invented a new wangle. She persuaded
the following persons to meet one afternoon: her rich aunt (on furlough form a mental
hospital), to contribute money; her uncle, who was a very good salesman when sober; and the
president of Ultra Corporation, which had the capability to manufacture the wangles. These
four decided to form a partnership to manufacture and sell the wangles. They all signed a
partnership agreement, although the uncle was extremely intoxicated at the time, and the
president signed on behalf of Ultra Corporation. Who could become a partner? - Answer
Ultra Corporation
many states require partnerships to file the partnership name under laws known as fictitious
name statues. These statutes - Answer have little effect on the creation or operation of a
partnership other than the imposition of a fine or other minor penalty for noncompliance.
James Quick was a partner in the Fast, Sure, and Quick Factors partnership. He subsequently
died. His will left everything to his wife, including a one-third interest in the land and building
owned by Fast, Sure, and Quick. - Answer Mrs. Quick has the right to receive a settlement for
her husband's interest in the partnership.
Unless the partnership agreement prohibits it, a partner in a general partnership may validly
assign rights to:
Partnership property (1) yes/no
Partnership distributions (2) yes/no - Answer no/yes
, Allen, Burton, and Carter were equal partners for the purpose of buying and selling real estate
for profit. For convenience, title to all property purchased was taken in the name of Allen. Allen
died with partnership real estate and partnership personal property valued at $250,000 and
$5,000 respectively, standing in his name. The partnership had no debts. Allen had bequeathed
all his personal property to his children. In this situation, - Answer Allen's estate is entitled to
settlement for the value of his partnership interest.
Skip & Trip decide to start a boutique selling preppy clothing. They sign a partnership agreement
providing that Skip will contribute $6,000 toward the necessary $10,000 in start-up capital, and
Trip will contribute $4,000. If the agreement is silent as to management and profits, Skip should
receive - Answer 50% of the profits and share management equally with Trip
Woody Wilson and Garrent Lecy entered into a partnership for a 5-year period to repair
appliances. Wilson did the work in the store and Levy made the service calls. Wilson discovered
the Levy has been pocketing some of the payments for the service calls and not turning them all
in to the partnership. Wilson - Answer may bring suit to demand a formal accounting and
dissolution of the partnership
Cobb, Inc., a partner in TLC Partnership, assigns its partnership interest to Bean, who is not
made a partner. After the assignment, Bean asserts the rights to
I. Participate in the management of TLC.
II. Cobb's share of TLC's partnership profits.
Bean is correct as to which of these rights? - Answer II only
in a general partnership, which of the following acts must be approved by all the partners? -
Answer admission of a partner
Partners have a fiduciary relationship with each other. Accordingly, a partner - Answer may
not earn a secret profit in dealings with the partnership or partners
the apparent authority of a partner to bind the partnership in dealing with third parties -
Answer will be effectively limited by the filing of a statement of partnership authority
Buster and Rover formed a partnership to invest in real estate. However, Buster also decided to
sell TVs on the side. Buster went to Harold, a wholesaler, and purchased 20 TVs on credit in the
Final Exam Questions Fully Solved
2025-2026.
which of the following statements about the form of a general partnership agreement is true? -
Answer it must be in writing if the partnership is to last for longer than 1 year.
B approached L and proposed they form a partnership to exploit a profitable idea of B's. L
declined, citing the risk of unlimited liability. B then proposed that L lend B $50,000 and that B
go into the business as a sole proprietor. L would receive half the profits and the right to veto
any of B's decisions. The debt would have a long-term maturity date to facilitate operation of
the business during its development stage. If L accepts the above proposition, the likely result is
that - Answer B and L have formed a partnership even if they did not intend to
bonnie was a very bright and mature 16-year-old who invented a new wangle. She persuaded
the following persons to meet one afternoon: her rich aunt (on furlough form a mental
hospital), to contribute money; her uncle, who was a very good salesman when sober; and the
president of Ultra Corporation, which had the capability to manufacture the wangles. These
four decided to form a partnership to manufacture and sell the wangles. They all signed a
partnership agreement, although the uncle was extremely intoxicated at the time, and the
president signed on behalf of Ultra Corporation. Who could become a partner? - Answer
Ultra Corporation
many states require partnerships to file the partnership name under laws known as fictitious
name statues. These statutes - Answer have little effect on the creation or operation of a
partnership other than the imposition of a fine or other minor penalty for noncompliance.
James Quick was a partner in the Fast, Sure, and Quick Factors partnership. He subsequently
died. His will left everything to his wife, including a one-third interest in the land and building
owned by Fast, Sure, and Quick. - Answer Mrs. Quick has the right to receive a settlement for
her husband's interest in the partnership.
Unless the partnership agreement prohibits it, a partner in a general partnership may validly
assign rights to:
Partnership property (1) yes/no
Partnership distributions (2) yes/no - Answer no/yes
, Allen, Burton, and Carter were equal partners for the purpose of buying and selling real estate
for profit. For convenience, title to all property purchased was taken in the name of Allen. Allen
died with partnership real estate and partnership personal property valued at $250,000 and
$5,000 respectively, standing in his name. The partnership had no debts. Allen had bequeathed
all his personal property to his children. In this situation, - Answer Allen's estate is entitled to
settlement for the value of his partnership interest.
Skip & Trip decide to start a boutique selling preppy clothing. They sign a partnership agreement
providing that Skip will contribute $6,000 toward the necessary $10,000 in start-up capital, and
Trip will contribute $4,000. If the agreement is silent as to management and profits, Skip should
receive - Answer 50% of the profits and share management equally with Trip
Woody Wilson and Garrent Lecy entered into a partnership for a 5-year period to repair
appliances. Wilson did the work in the store and Levy made the service calls. Wilson discovered
the Levy has been pocketing some of the payments for the service calls and not turning them all
in to the partnership. Wilson - Answer may bring suit to demand a formal accounting and
dissolution of the partnership
Cobb, Inc., a partner in TLC Partnership, assigns its partnership interest to Bean, who is not
made a partner. After the assignment, Bean asserts the rights to
I. Participate in the management of TLC.
II. Cobb's share of TLC's partnership profits.
Bean is correct as to which of these rights? - Answer II only
in a general partnership, which of the following acts must be approved by all the partners? -
Answer admission of a partner
Partners have a fiduciary relationship with each other. Accordingly, a partner - Answer may
not earn a secret profit in dealings with the partnership or partners
the apparent authority of a partner to bind the partnership in dealing with third parties -
Answer will be effectively limited by the filing of a statement of partnership authority
Buster and Rover formed a partnership to invest in real estate. However, Buster also decided to
sell TVs on the side. Buster went to Harold, a wholesaler, and purchased 20 TVs on credit in the
