Ch 27

Question 1

an agreement by two or more persons to carry on, as co-owners, a business for profit

Answer 1

partnership

Question 2

market value of the good reputation of any company, partnership, or other business entity

Answer 2

goodwill

Question 3

a business entity that has no tax liability. the entity’s income is passed through tot the owners, and they pay taxes on the income

Answer 3

pass-through entity

Question 4

a written agreement that sets forth each partner’s rights and obligations with respect to the partnership

Answer 4

articles of partnership

Question 5

in partnership law, a doctrine under which a plaintiff may sue, and collect a judgment from, all of the partners together (jointly) or one or more of the partners seperately (severally or individually). a partner can be held liable even if she or he did not participate in, ratify, or know about the conduct that gave rise to the lawsuit

Answer 5

joint and several liability

Question 6

a partnership consisting of one or more general partners and one or more limited partners

Answer 6

limited liability partnerships

Question 7

in a limited partnership, a partner who assumes responsibility for the management of the partnership and has full liability for all partnership debts.

Answer 7

general partner

Question 8

contributes capital to the partnership but has no right to participate in its management. The partner has no liability for partnership debts beyond the amount of her or his investment

Answer 8

limited partner