Question

19) Assuming the limited partnership is properly conducted, what is the maximum amount that a limited partners can be held liable for in a lawsuit against the partnership?

A) Unlimited personal liability.

B) The amount the limited partner brought into the business.

C) The level of liability insurance the partnership purchased for the partners.

D) A court would determine the amount of personal liability of a limited partner.

E) The amount allocated by statute of the state in which the partnership is domiciled.

24) Raul and Limlin are dissolving their partnership. Raul stops acting as a partner and says that this confirms the dissolution of the partnership. Limlin says that this does not dissolve the partnership. Is Limlin correct?

A) Yes, because only one partner, by choice, stopped fulfilling the role of a partner to the business and both partners must stop fulfilling their roles.

B) Yes, because Limlin has not consented to the final dissolution of the partnership.

C) No, dissolution is complete when any partner, by choice or by default, stops fulfilling the role of a partner to the business.

D) No, because thirty days after any partner, by choice or by default, stops fulfilling the role of a partner to the business this dissolves the partnership.

E) Yes, because a court will determine if the partnership is completely dissolved.

27) ________ are what corporations declare in order to distribute their income to shareholders.

A) Profit statements

B) Dividends

C) Statements of cash flow

D) Income and Loss sheets

E) Net-flow statements

Answer 1

19) Assuming the limited partnership is properly conducted, the maximum amount that a limited partners can be held liable for in a lawsuit against the partnership is

• C) The level of liability insurance the partnership purchased for the partners.

24) Raul and Limlin are dissolving their partnership. Raul stops acting as a partner and says that this confirms the dissolution of the partnership. Limlin says that this does not dissolve the partnership.

• C) No, dissolution is complete when any partner, by choice or by default, stops fulfilling the role of a partner to the business.

27) Dividends are what corporations declare in order to distribute their income to shareholders.

• B) Dividends