Chapter 17 Quiz Flashcards
Orlando is a limited partner in Port of Call Exports, a limited partnership. By participating in the firm’s management, Orlando is liable for its obligations
a. to the extent of his capital contribution to the firm.
b. to the full extent.
c. to no extent.
d. in proportion to the number of partners in the firm.
b
Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm’s books and information regarding partnership business, Brent and Char are entitled to
Answers:
a. access in proportion to their participation in management of the firm.
b. access to the parts that directly relate to their capital contributions.
Correctc. complete access.
d. no access.
c
Commercial Credit & Finance is a limited partner-ship. Derry, Eleni, and Frey are the general partners. Derry dies. The partnership can
Answers:
a. continue only as a general partnership.
b. not continue because Derry’s death dissolves the firm.
c. continue only after a distribution of its assets.
Correctd. continue only if Eleni and Frey consent.
d
Delany and Efron want to form a limited partnership to do general business bookkeeping with an emphasis on tax accounting. In most states, a limited partnership will be created when Delaney and Efron
Answers:
a. accept their first client.
b. execute a partnership agreement.
Correctc. file a certificate of limited partnership.
d. make their capital contributions.
c
Brad is a general partner, and Carlos and Dora are limited partners, in Eastside Physicians, a medical clinic and limited partnership. Carlos’s assignment of his interest in Eastside to Good Credit Corporation results in
Answers:
Correcta.
nothing with respect to Eastside’s existence.
b.
the termination of Eastside’s legal existence.
c.
the suspension of Eastside’s business.
d.
the maturity of Eastside’s debts.
a
Brad is a general partner, and Carlos and Dora are limited partners, in Eastside Physicians, a medical clinic and limited partnership. Brad’s dissociation from the firm results in
Answers:
a.
the maturity of Eastside’s debts.
b.
the suspension of Eastside’s business.
c.
nothing with respect to Eastside’s existence.
Correctd.
the termination of Eastside’s legal existence.
d
Hugh is a limited partner and Ida is a general partner in HI Volume, a limited partnership. Joy is one of HI Volume’s creditors. On HI Volume’s dissolution, the party whose rights have the first priority to the firm’s assets is
Answers:
a. Ida only.
b. Hugh and Ida.
c. Hugh only.
Correctd. Joy only.
d
Jess and Keri are members of Livewire LLC, a limited liability company. In most situations, with respect to Livewire’s debts, Jess and Keri are shielded from
Answers:
a. no liability.
Correctb. personal liability.
c. all liability.
d. ”corporate veil” liability.
b
Nell is considering forms of business organization for Optic Center, a medical eye clinic. An advantage of a limited liability partnership is that, depending on the applicable state statute, partners can avoid personal liability for
Answers:
a. any partnership obligation.
b. their own wrongful acts.
Correctc. their partners’ wrongful acts.
d. none of the choices.
c
Nick and Orlando are limited partners in Port City Exports, a limited partnership. To avoid personal liability for the firm’s obligations, they must not
Answers:
Correcta. participate in the firm’s management.
b. acquire an interest in the firm.
c. contribute property to the firm.
d. engage in activities independent of the firm’s business.
a
