EXAM STUDY MATERIALS 8/7/2024 11:29 AM
found liable for the injury, and Roberts obtains a judgment against Boswell for $100,000.
Boswell's business is out of assets. Which of the following is true?
Romulus or Remus - answerRomulus, Remus, and Caesar form RRC L.P., a limited
partnership to devel...
IV only - answer✔✔Which of the following is not an important factor in choosing a business
entity?
I. Liability protection for principals.
II. Tax impact.
III. Capitalization method.
IV. Proposed name of entity.
Principals - answer✔✔A business entity has at least one or more _______, who are the owners
of the company.
I, II, and III. - answer✔✔Which of the following is an important factor in choosing a business
entity?
I. Liability protection for principals.
II. Tax impact.
III. Capitalization method.
IV. Proposed name of entity.
joint and several - answer✔✔Glenn and Curtis are general partners in the business of selling
widgets. As general partners, they have ______ liability for all debts and liabilities of the widget
partnership.
lack of protection for personal assets from business liabilities - answer✔✔A sole proprietorship
is an attractive entity for start-up businesses. However, the primary downside is ___________.
Roberts may execute the judgment against Boswell's personal assets. - answer✔✔Boswell is a
sole proprietor and negligently injures Roberts while providing construction services. Boswell is
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
found liable for the injury, and Roberts obtains a judgment against Boswell for $100,000.
Boswell's business is out of assets. Which of the following is true?
Romulus or Remus - answer✔✔Romulus, Remus, and Caesar form RRC L.P., a limited
partnership to develop land for a shopping center. Romulus and Remus are general partners,
while Caesar is a limited partner. Romulus borrows money for the partnership from a local bank
without Remus's or Caesar's knowledge. If the business assets of RRC are not sufficient to pay
back the loan, where may the bank turn for the balance of the loan?
Roberts may execute the judgment against Boswell's personal assets. - answer✔✔Boswell is a
sole proprietor who prepares tax returns for Roberts. Boswell negligently files a tax return with a
serious error that results in Roberts being fined $10,000 by tax authorities. Roberts obtains a
judgment against Boswell for $10,000. Which of the following is true?
I , II, III, and IV. - answer✔✔Which of the following are elements of a general partnership?
I. Association of two or more people.
II. Co-ownership and co-management of a business.
III. Share in profits.
IV. Ongoing relationship.
It has at least one general partner and at least one limited partner. - answer✔✔Which of the
following is true about a limited partnership?
III and IV - answer✔✔Which of the following are not true about withdrawal under the RULPA?
I. A general partner may always withdraw at any time.
II. The withdrawal of a general partner does not automatically result in dissolution of the
partnership.
III. Withdrawal of a general partner triggers winding up.
IV. Limited partners may withdraw upon 30 days notice to the other partners.
I, II, and III - answer✔✔Which of the following is an important factor in choosing a business
entity?
I. Ease of formation.
II. Management and operation.
III. Funding of the entity.
IV. Proposed name of entity.
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