LES 305 Exam 3 Study Questions well
answered to pass
Gwendolyn Melvin wishes to start a children's sports store called, "Just Let 'Em Play!" as a sole
proprietor. What form must she file so that she can use another name than her own?
- DBA certificate
- Disclosure statement
- UCC-1 statement
- Name certificate - correct answer ✔✔DBA certificate
Which of the following does not require a duty of care or good faith to other principals?
- A general partnership
- A family limited partnership
- A sole proprietorship
- A limited partnership - correct answer ✔✔A sole proprietorship
The doctrine that allows a creditor to seek recovery from the purchaser of assets even when the
purchaser did not expressly assume such liabilities as part of the purchase is called:
- For what the courts determine as fair and just repayment of the debts of the business
- Only up to half the debts of the business - correct answer ✔✔For all the debts of the business
Jed wants to pass his sole proprietorship on to his son Luke in his will. Can he do this?
- No
- Yes
- No, unless the court can prove that Luke is in the best position to run the business
- Yes if the court finds no other heirs exist - correct answer ✔✔No
Which of the following requires a formal filing to be recognized as a valid business entity?
- A sole proprietorship
- All business entities
- A limited partnership
- A general partnership - correct answer ✔✔A limited partnership
Currently, LLPs are often used to protect family businesses as they provide a way to resolve:
- Issues regarding transition from one generation to another
- Management disputes
- Capitalization disputes
- Issues of family fiduciary duties and rights to represent and bind the business - correct answer
✔✔Issues regarding transition from one generation to another
In a general partnership:
, - An unequal split of profits may be agreed to based on the partnership agreement, but losses must be
split equally
- Profits and losses must be split equally among the partners
- Profits must be split equally, but losses may be split unequally based on the partnership agreement
- Profits and losses may be unequally split based on the partnership agreement - correct answer
✔✔Profits and losses may be unequally split based on the partnership agreement
A responsibility to act in the best interests of a partnership by the partners is called a
- Legal duty
- Fiduciary duty
- Ethical duty
- Moral duty - correct answer ✔✔Fiduciary duty
The origins of LLP's were rooted in protection of:
- Professional service firm partnerships
- Professional service firm sole proprietorships
- Private service firm partnerships
- Private service firm sole proprietorships - correct answer ✔✔Professional service firm partnerships
After the ULLCA was created, some states have started to adopt an act that modifies it called:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.