The Limited Liability Partnership Self-Quiz

 

 

 

 

 

 

 

Elvin and Andy sign a five-year partnership agreement. At the end of the fifth year, they decide to continue working together. This partnership is terminable:
Choice 1 at will by either partner
Choice 2 only after another 5 years
Choice 3 only if either partner withdraws
Choice 4 none of the above
Roscoe is forced to sell his partnership interest in a general partnership to pay his largest creditor. The transfer of his partnership interest will:
Choice 1 result in dissolution of the partnership
Choice 2 have no effect on the partnership
Choice 3 enable the creditor to become a partner
Choice 4 none of the above
Four people are general partners in a medical practice. One partner dies three years after the formation of the partnership. The partnership
Choice 1 continues to operate
Choice 2 becomes a sole proprietorship
Choice 3 is dissolved
Choice 4 none of the above
Hans, Erwin, and Webster are partners in a computer company. Webster decides to leave the partnership. Hans signs a contract prior to the decision. The contract is binding on
Choice 1 Hans and Erwin
Choice 2 the partnership
Choice 3 Hans only
Choice 4 none of the above
Sherry and Mike are partners - Mike contributing 75% of the capital - profits being split equally. When the partnership becomes unprofitable they dissolve it. The partnerships’ liability are greater than its assets, and Sherry pays them off. Sherry
Choice 1 has a right of contribution against Mike to recover his share of the excess
Choice 2 has a right of contribution against Mike to recover all the excess
Choice 3 is entitled to nothing from Mike but can take a tax deduction
Choice 4 is entitled to nothing from Mike and is not entitled to a tax deduction
Vera and William are partners and BankOne is the firm’s creditor. Ace Mortgage is William’s personal creditor. On the firm’s dissolution, who has priority over the firm’s assets?
Choice 1 Ace Mortgage
Choice 2 BankOne
Choice 3 Vera and William
Choice 4 None of the above
Wally and Theodore are limited partners in a limited partnership. To avoid personal liability for partnership obligations, they must not
Choice 1 contribute cash or property to the firm
Choice 2 acquire an interest in the firm
Choice 3 undertake the managerial responsibilities
Choice 4 all of the above
A limited partnership must have at least:
Choice 1 one general partner and one limited partner
Choice 2 one general partner and two limited partners
Choice 3 two general partners and one limited partner
Choice 4 none of the above
In most states, a limited partnership will be created at the time:
Choice 1 the partnership agreement is executed
Choice 2 the partners pay their capital contributions
Choice 3 the certificate of limited partnership is filed
Choice 4 none of the above
Limited partners are entitled to:
Choice 1 access to partnership books
Choice 2 a return of their capital contributions
Choice 3 assign their interests in the partnership
Choice 4 all of the above

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