question archive 13) A general partner a
13) A general partner a
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13) A general partner
a.has the right to inspect partnership books and records at all reasonable times.
b.may copy partnership books and records with the consent of the managing partner.
c.may not transfer his/her partnership economic interest without the written consent of all other partners (or partner),.
d.cannot receive a salary from the partnership in addition to his/her share of profits.
14.General partners
a.are not personally liable for the debts of the partnership.
b.are personally liable for the debts of the partnership.
c.are liable for the debts of the partnerhip to the extent of their investment in the partnership.
d.must register as such in the state where the partnership was formed.
15.In a limited liability partnership (LLP)
a.a partner may avoid liability for the malpractice of other partners.
b.a partner who commits malpractice is automatically expelled from the partnership under the UPA.
c.the maximum number of partners is limited by the law of most states.
d.it is deemed unethical to employ non-professionals.
16.A limited liability company(LLC)
a.is a hybrid combining corporate and partnership features.
b.is a type of partnership that must be registered with the state of formation.
c.can own tangible and intangible personal property but not real property.
d.is limited to 100 members by the law of most states.
17.A limited liability company
a.is presumed to be member managed.
b.is presumed to be manager managed.
c.may not have members who are foreign nationals under federal law.
d.can have a duration of no more than 25 years under the law of most states.
18.A joint venture
a.is identical to a partnership.
b.is a form of limited liability company.
c.is a form of limited partnership.
d.requires two or more persons agreeing to join their efforts to completea single transaction or a series of related transactions.
19.A syndicate
a.cannot be incorporated under the law of most states.
b.is a type of criminal(organized crime) organization.
c.is an investment group formed to finance a particular project.
d.is an income tax avoidance device.
20.A corporation
a.not being a natural person cannot be held criminally liable.
b.not being a natural person has no civil rights.
c.may be held liable for the criminal acts of its employees.
d.not being a natural person cannot be held liable for torts.
21.An S corporation
a.is limited by the law of most states to a maximum amount of capitalization.
b.is a federal income tax concept.
c.is a state law concept, part of each state's corporations statute.
d.is income taxed on all of its income before distributions (if any) of dividends to its shareholdes.
22.A close corporation
a.must also be an S corporation.
b.must register with the Securities and Exchange Commission if capitalized at over $10million.
c.with only shares of common stock issued cannot enter into a partnership.
d.is one whose shares of stock are held by relatively few persons.
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13.A
14.B
15.A
16.A
17.A
18. B
19.C
20.C
21.B
22.D
Step-by-step explanation
13. Answer: A.
The general partner is allowed to audit the books and documents of the partnership at all appropriate times and there is no limit to the review of the books and is free to pass the economic interest. In addition to his/her income, he can also earn salaries.
14. Answer: B.
The general partners have unlimited liabilities against the company's debts, unlike the other partners. Hence the amount of investment made in the partnership exceeds his liability. As a result, the general partner is legally responsible for the partnership's debts.
15. Answer: A.
Each partner is shielded from any malpractice committed by other partners in the LLP (Limited Liability Partnership) (s). A spouse may thus, escape responsibility for other partners' malpractice.
16. Answer: A.
A limited liability corporation (LLC) is a legal structure in which the company's owners cannot be held individually liable for the debts or liabilities of the company. In nature, limited liability corporations are hybrid organizations that incorporate the features of a company and a partnership or sole proprietorship.
17. Answer: A.
Option an is right as the partners run the company by themselves in the case of LLP and no external management is employed. Option b, thus is incorrect too. Option c is incorrect since LLP may have representatives who are foreign nationals. Option d is incorrect since there is no defined time in any state law for LLP.
18. Answer: B
In a joint venture, the gains, losses, and costs associated with it are the responsibility of each of the partners. The venture, however, is its own organization, independent from the other business interests of the members.
19. Answer: C.
A syndicate in finance terms is a group of bankers or investors who come together to offer a business or a project loan. It is one of the common sources of finance for projects. Option c is therefore right. Option a is incorrect because it is legal to form a syndicate to give out loans. Option b is wrong since criminal groups are often referred to as syndicates, but the word syndicate is typically suffixed with criminal work. Option d is wrong since there is no tax evasion in the creation of a syndic.
20. Answer: C.
A company can be kept accountable for its employees' illegal actions.
21. Answer: B.
S corporations are ordinary business corporations that for federal tax purposes, chose to transfer corporate profits, losses, deductions and credits to their shareholders.
22. Answer: D.
It is one whose shares are owned by very few individuals who also belong to a family.
