True/False
Indicate whether the
statement is true or false.
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1.
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A limited partnership takes the basic arrangement
found in a general partnership and has the protection of limited liability.
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2.
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General partners fulfill the same role and duties
in a limited partnership as they do in general partnerships.
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3.
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General partners are protected by limited liability
in limited partnerships.
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4.
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Limited partnerships have a rich history under the
common law.
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5.
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The Uniform Limited Partnership Act was created in
1916.
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6.
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Limited partners are not permitted to pass through
the business losses from their limited partnership to their individual income tax
returns.
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7.
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A limited partnership must contain the name of at
least one of the limited partners.
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8.
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Limited partnership agreements are generally
verbal, not in writing.
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9.
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Limited partnerships can be dissolved by court
action.
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10.
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General partners have no fiduciary responsibilities
to limited partners.
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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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A business form that contains general partners in
limited partners where the limited partners are protected by the concept of limited
liability.
a. | Limited liability company | b. | Limited liability agreement | c. | Limited partnership | d. | Corporation |
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12.
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What is the authority for creating a limited
partnership?
a. | Appellate decisions | b. | Local ordinances | c. | Federal
statutes | d. | State law |
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13.
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The feature that defines the difference between
general partnerships and limited partnerships.
a. | Unlimited liability | b. | Personal liability | c. | Limited
liability | d. | None of the above |
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14.
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The value of the limited partners’ investment
in the business.
a. | Departure | b. | Contribution | c. | Deposit | d. | Valuation |
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15.
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The documentation that must be filed with the state
to create a limited partnership.
a. | Certificate of incorporation | b. | Certificate of liability | c. | Certificate of
recognition | d. | Certificate of
limited partnership |
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16.
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One item that a limited partnership must provide
the state is the identification of a person who will receive all civil suits and act as agent for the
limited partnership in civil actions. What is this person called?
a. | Agent for service of process | b. | Dual agent | c. | Agent of
liability | d. | Accounted agent |
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17.
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The name for the document that creates the limited
partnership.
a. | Limited partnership contract | b. | Limited partnership document | c. | Limited partnership agreement | d. | Limited partnership statement |
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18.
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All of the following are fiduciary duties owed by
general partners to limited partners except:
a. | Duty to act in good faith | b. | Duty to support decisions | c. | Duty of fairness | d. | Duty of
loyalty |
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19.
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A limited partnership agreement contains which of
the following?
a. | The duties and responsibilities of general
partners | b. | Remedies available for breach of those
duties | c. | Distribution of profits and
losses | d. | All of the above are normally contained in a limited
partnership agreement |
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20.
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The term that describes when persons put their own
interests ahead of those of the business to which they owe a fiduciary duty.
a. | Negligent misrepresentation | b. | Fraud | c. | Negligence | d. | Self-dealing |
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