Quiz 5 Proprietors & Partners

Question 1

Sole Proprietors

Answer 1

sole propietorship is the simplest form of business. The owner is the business.

Question 2

Sole Proprietor Liability

Answer 2

Owner has unlimited liability for all losses or liabilities incurred by the business

Question 3

General Partners

Answer 3

Assumes management responsibility for the partnership and has full responsibility for the partnership and for all its debts

Question 4

General Partners Liability

Answer 4

Have unlimited personal liability for the partnership’s debts and obligations, including those incurred by other partners.

Question 5

Limited Partnership

Answer 5

limits the liability of some of its owners
Consists of one or more general partners and one or more limited partners

Question 6

General Partner

Answer 6

Assumes management of partnership and takes full responsibility for partnership and debts

Question 7

Limited Partner

Answer 7

Contributes cash/or property.
Is NOT involved in management so is not personally liable for debts (beyond initial contributions)

Question 8

Limited Partnerships Liability Exception

Answer 8

If limited partner is involved in management he loses limited liability and is treated as a general partner and is now personally liable

Question 9

What is a LLC

Answer 9

Limited Liability Company

Question 10

What is a LLP

Answer 10

Limited Liabilty Partnership