Chapter 11 Quiz Flashcards
Is a general partner financially responsible for the business?
A. Yes
B. No
A. Yes
In Texas, if two or more persons are named as owners and there is no specific indication as to how they are taking title, they are presumed to be:
A. Joint tenants
B. Tenants in common
C. Separate owners
D. Joint owners
B. Tenants in common
One of the main benefits of a living trust is:
A. To protect minor children
B. To avoid conflict with a spouse
C. To avoid probate
D. To generate income
C. To avoid probate
Is it true that a property owned in “severalty” is owned by more than one person?
A. Yes
B. No
B. No
Able, Baker, and Charles are going to purchase an investment property as co-owners and will take title as joint tenants. Which of the following statements is incorrect?
A. All will acquire their interest at the same moment in time.
B. Each will receive a separate deed for his share.
C. All will have equal interest in the property.
D. All will enjoy equal rights of possession.
B. Each will receive a separate deed for his share.
What is true about a corporation?
A. The corporation must pay income tax.
B. The corporation is owned by stockholders.
C. The corporation has an elected Board of Directors.
D. All of the above
D. All of the above
The day-to-day operation of a corporation is the responsibility of the:
A. Stockholders
B. Board of directors
C. Management
D. Syndication
C. Management
John bought a house. He lives in Texas and is single. What form of ownership does he have?
A. Severalty
B. Tenancy in common
C. Joint tenancy
D. Community property
A. Severalty
All of the following are TRUE about a REIT EXCEPT:
A. REITs are companies that are modeled after mutual funds.
B. There are two types of REITs, equity and mortgage REITs.
C. REITS allow investors to own large commercial properties through the purchase of equity in the property.
D. REITS provide no long-term benefit but instead are short-term investments
D. REITS provide no long-term benefit but instead are short-term investments
What statement does NOT apply to tenants by entirety?
A. In case of a spouse’s death, the title does not automatically pass to the surviving spouse.
B. Is a type of concurrent estate
C. Husband and wife must acquire the property at the same time
D. Neither husband nor wife is able to sell any part of the property without the other’s consent.
A. In case of a spouse’s death, the title does not automatically pass to the surviving spouse.
Which statement is NOT true regarding joint tenancy and tenants in common?
A. Joint tenancy is a type of concurrent estate.
B. Joint tenants own equal shares of a property, given to them at one time with the same deed.
C. Joint tenancy has “rights of survivorship.”
D. With joint tenancy one owner can mortgage or sell the property without the other owner’s consent.
D. With joint tenancy one owner can mortgage or sell the property without the other owner’s consent.
Which statement does NOT apply to Texas Homestead laws?
A. An urban homestead is limited to 10 acres.
B. Homestead exemption extends to all debts.
C. A rural homestead can be up to 200 acres for a married couple.
D. Urban homestead acreage must share a common border.
B. Homestead exemption extends to all debts.
Which statement about joint tenancy and the four unities is NOT true?
A. All tenants must acquire the property at the same time.
B. If a joint tenant conveys their interest to a third party through sale, then the unity of title no longer exists between the joint tenants.
C. When joint tenancy is terminated, it becomes tenancy by the entirety.
D. All parties must have an equal interest in real property, such as equal ownership share and vesting for the same duration.
C. When joint tenancy is terminated, it becomes tenancy by the entirety.
What is the simplest form of real estate ownership?
A. Tenancy in common
B. Tenancy at sufferance
C. Joint tenancy
D. Tenancy in severalty
D. Tenancy in severalty
Which statement is NOT true regarding general partnerships?
A. A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits and financial and legal liabilities of a jointly-owned business structure.
B. Partners agree to unlimited liability, which means either of their personal assets may be liable to the partnership’s obligations.
C. Creating a general partnership is more expensive than setting up a corporation or a limited liability partnership
D. Any partner may be sued for the entirety of a partnership’s business debts.
C. Creating a general partnership is more expensive than setting up a corporation or an limited liability partnership
