Business Law: Chapter 21

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Business Law: Chapter 21
2015-03-08 19:51:04
Business Organizations

Business organizations
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  1. What can dissolve a partnership by operation of law?
    • 1. Death of a partnerĀ 
    • 2. The partnership's engagement in an activity that suddenly becomes illegal
  2. True or False?

    German law allows silent partnerships, and the silent partner is not held personally liable for damages incurred in the course of business.
  3. A limited partner's limited personal liability depends on the partners maintaining three conditions. What are they?
    • 1. The limited partner has complied in good faith with the requirement that a certificate of limited partnership be filed.
    • 2. The limited partner does not participate in the control of the business.
    • 3. The limited partner's surname is not part of the partnership name.
  4. True or False?

    Russian law recognizes two different kinds of partnerships: the "full" partnership and the "simple" partnership, but oral partnerships are not accepted.
  5. True or False?

    When the partnership is dissolved, the partner no longer has actual authority to bind the partnership.
  6. True or False?

    During the winding-up process, the partners may not engage in any business that competes with the partnership business.
  7. True or False?

    The partner who wrongfully dissolved the partnership cannot require that the business be wound up, the partner can be held liable for damages to the remaining partners, and the remaining partners can choose to continue the business under the partnership name or to wind up the business.
  8. Limited partnerships are also known as ______.
    Special partnerships
  9. When the articles of partnership do not address the matter, what is three required unanimous agreement among the partners?
    • 1. A decision to change some element of the partnership agreement
    • 2. A decision to admit a new partner,
    • 3. A decision to alter the nature of the firm's business.
  10. True or False?

    If a partner makes an honest mistake in fulfilling her responsibilities to the partnership, she will not be held liable for the mistake.
  11. True or False?

    The implied authority of partners is determined by the partnership agreement.
  12. Under the Uniform Partnership Act, in regard to an agreement with a third party, what is true under the regarding personal liability of partners for obligations of the partnership?
    If the partnership is liable, each individual partner has unlimited personal liability.
  13. What is defined as the change in the relation of the partners caused by any partner's ceasing to be associated with the carrying on, as distinguished from the winding up, of the business?
  14. True or False?

    Title to property may not be put in the name of a partnership.
  15. True or False?

    A partner who refuses to obey the articles of partnership may be held liable for any losses that the partnership incurs based upon that
  16. True or False?

    Joint and several liability means that partners must be sued jointly.
  17. True or False?

    When a partnership is dissolved based upon the withdrawal of a partner, that partner no longer has actual authority to bind the partnership.
  18. What may be a "person" under the Uniform Partnership Act?
    Partnerships, individuals, corporations, and other associations
  19. What is a written agreement that creates a partnership called?
    Articles of partnership
  20. When the articles of partnership do not address the matter, what is true regarding a partner's right to sell a partnership interest to a creditor?
    A partner can sell his or her interest in a partnership to a creditor.