True/False
Indicate whether the
statement is true or false.
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1.
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It is possible to create an involuntary general
partnership.
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2.
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A general partnership can involve just one
person.
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3.
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General partnership agreements have minimum
contractual requirements.
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4.
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Running a business for profit is one of the minimum
requirements to create a general partnership.
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5.
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If a person lacks legal capacity, he or she cannot
be a general partner.
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6.
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General partners are protected by limited
liability.
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7.
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A corporation can be a general
partner.
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8.
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There is no provision authorizing the category of
“silent partner.”
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9.
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Under the Uniform Partnership Act, spouses cannot
be general partners.
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10.
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General partnerships are governed under federal
law, not state law.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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11.
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Each of the following is a method for terminating a
general partnership except:
a. | By agreement | b. | By bankruptcy | c. | By
divorce | d. | By the death of a general
partner |
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12.
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The service of a civil claim, such as a complaint
for damages on the defendant in a civil suit.
a. | General partner’s
statement | b. | Burden of proof | c. | Assessment | d. | Service of
process |
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13.
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A judgment for the full amount requested in the
complaint; granted if the defendant fails to file an answer.
a. | Judgment | b. | Default judgment | c. | Stipulation | d. | Motion |
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14.
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When two or more persons are liable for a debt or a
judgment.
a. | Joint and several liability. | b. | Joint and several responsibility. | c. | Joint and several assessment. | d. | Joint and several liquidity. |
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15.
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The written agreement that forms a general
partnership.
a. | Partnership contract | b. | Partnership agreement | c. | Partnership
leases | d. | Tenancy by
entirety |
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16.
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All the following are concerns for partners
except:
a. | How will profits be shared? | b. | Who is responsible for managing the day-to-day activities of the
partnership? | c. | What is the
marital status of the general partners? | d. | How long will the
partnership last? |
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17.
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This sample legislation created a uniform act that
could be adopted by other states to modify their law of general partnership.
a. | Uniform Partnership Act | b. | Uniform General Liability Act | c. | Uniform Assessment Outcomes | d. | Uniform Business Act |
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18.
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All of following are legitimate classifications of
partners except:
a. | Junior partner | b. | Senior partner | c. | Managing
partner | d. | Void partner |
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19.
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A partner who takes no part in a management
day-to-day running of the general partnership.
a. | Senior partner | b. | Managing partner | c. | Silent
partner | d. | All of the above |
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20.
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Which of the following individuals or entities is
legally barred from entering into a general partnership?
a. | An adult, natural person | b. | A corporation | c. | A limited
partnership | d. | All the above can
enter into a general partnership |
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