Question 1

Any partner may petition the court to wind up the affairs of a limited partnership.

Accepted Answer

A) True 
 B)False

Question 2

In which of the following circumstances is a decree of judicial dissolution granted to a partner?

Accepted Answer

A)  A partner is rendered incapacitated to perform his or her duties.
B)  The partners do not have sufficient funds to repay debts.
C)  It is not reasonably practical to carry on the business in conformity with the limited partnership agreement.
D)  All limited partners have withdrawn but the general partners want to continue with the partnership.

Question 3

Master limited partnerships are traded publicly.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of a limited partnership?

Accepted Answer

A)  Other limited partnerships cannot become limited partners in an existing limited partnership.
B)  A limited partner is personally liable for the debts of the partnership.
C)  Corporations are allowed to become partners in a limited partnership.
D)  A limited partnership can have only one general partner but multiple limited partners.

Question 5

A decree of judicial dissolution is granted to a partner whenever it is not reasonably practical to carry on the business in conformity with the limited partnership agreement.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following documents does a domestic limited partnership require to be allowed to operate in another state?

Accepted Answer

A)  trade name certificate
B)  certificate of registration
C)  limited trade affidavit
D)  notice of electronic filing

Question 7

Which of the following information should a certificate of limited partnership contain?

Accepted Answer

A)  the latest date of dissolution of the partnership
B)  the clause that does not accept new general partners
C)  the name of the party who becomes a general partner in the event of transfer
D)  the scope of potential business opportunities and related investment

Question 8

Which of the following is true of the admission of a new general partner to an existing limited partnership?

Accepted Answer

A)  Only limited partners can be admitted to an existing partnership.
B)  A limited partnership agreement cannot waive the right of partners to approve the admission of new general partners.
C)  The oral consent of all partners is enough for admission of a general partner.
D)  Consent of all general partners is sufficient for the admission of a new limited partner.

Question 9

A limited partnership cannot have general partners.

Accepted Answer

A) True 
 B)False

Question 10

A limited liability limited partnership is a ________ in the state in which it is organized.

Accepted Answer

A)  sole proprietorship
B)  limited liability corporation
C)  domestic LLLP
D)  general partnership

Question 11

In which of the following forms of business partnerships are both general and limited partners not personally liable for debts?

Accepted Answer

A)  sole proprietorship
B)  general partnership
C)  master limited partnership
D)  limited liability limited partnership

Question 12

Which of the following is a cause for the dissolution of a partnership?

Accepted Answer

A)  written consent of the general partners
B)  withdrawal of a general partner
C)  withdrawal of all limited partners
D)  acquisition of business by another partnership

Question 13

Which of the following partners of a limited partnership invest capital but do not participate in management?

Accepted Answer

A)  specific partners
B)  limited partners
C)  general partners
D)  sole proprietors

Question 14

Limited partners are not liable for the debts and obligations of the partnership if they participate in the management of the limited partnership,without being employed as a manager or an executive.

Accepted Answer

A) True 
 B)False

Question 15

In most states,the formation,operation,and termination of limited partnerships are regulated by the Revised Uniform Limited Partnership Act.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following types of liability do limited partners of a limited partnership have for the debts and obligations of the limited partnerships?

Accepted Answer

A)  unlimited personal liability
B)  liability restricted to debts up to their capital contributions
C)  liability of termination as partner
D)  unlimited organizational capital liability

Question 17

A(n) ________ is a document that sets forth the rights and duties of general and limited partners.

Accepted Answer

A)  limited trade affidavit
B)  limited partnership agreement
C)  certificate of registration
D)  certificate of limited partnership

Question 18

In most states,the formation,operation,and termination of limited partnerships are regulated by the ________.

Accepted Answer

A)  RULPA
B)  ADA
C)  ADEA
D)  EEOC

Question 19

The words limited partnership can be abbreviated to Ltd.in the title of a limited partnership.

Accepted Answer

A) True 
 B)False

Question 20

How are profits and losses shared in the absence of a limited partnership agreement?

Accepted Answer

A)  Profits and losses are shared equally among all partners.
B)  Profits and losses are shared equally among general partners and unequally among limited partners.
C)  Profits are shared equally among all partners, losses are shared based on the value of each partner's capital contribution.
D)  Both profits and losses are shared on the basis of the value of each partner's capital contribution.

Exam 35: Limited Partnerships and Special Partnerships

Which of the following is a cause for the dissolution of a partnership?

Correct AnswerverifiedShow Answer

A(n) ________ is a document that sets forth the rights and duties of general and limited partners.

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How are profits and losses shared in the absence of a limited partnership agreement?

Correct AnswerverifiedShow Answer

Master limited partnerships are traded publicly.

Correct AnswerverifiedShow Answer

Which of the following partners of a limited partnership invest capital but do not participate in management?

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Which of the following is true of the admission of a new general partner to an existing limited partnership?

Correct AnswerverifiedShow Answer

Which of the following types of liability do limited partners of a limited partnership have for the debts and obligations of the limited partnerships?

Correct AnswerverifiedShow Answer

Any partner may petition the court to wind up the affairs of a limited partnership.

Correct AnswerverifiedShow Answer

In which of the following forms of business partnerships are both general and limited partners not personally liable for debts?

Correct AnswerverifiedShow Answer

In which of the following circumstances is a decree of judicial dissolution granted to a partner?

Correct AnswerverifiedShow Answer

A limited liability limited partnership is a ________ in the state in which it is organized.

Correct AnswerverifiedShow Answer

Which of the following documents does a domestic limited partnership require to be allowed to operate in another state?

Correct AnswerverifiedShow Answer

In most states,the formation,operation,and termination of limited partnerships are regulated by the Revised Uniform Limited Partnership Act.

Correct AnswerverifiedShow Answer

The words limited partnership can be abbreviated to Ltd.in the title of a limited partnership.

Correct AnswerverifiedShow Answer

A limited partnership cannot have general partners.

Correct AnswerverifiedShow Answer

A decree of judicial dissolution is granted to a partner whenever it is not reasonably practical to carry on the business in conformity with the limited partnership agreement.

Correct AnswerverifiedShow Answer

In most states,the formation,operation,and termination of limited partnerships are regulated by the ________.

Correct AnswerverifiedShow Answer

Which of the following information should a certificate of limited partnership contain?

Correct AnswerverifiedShow Answer

Which of the following is true of a limited partnership?

Correct AnswerverifiedShow Answer

Limited partners are not liable for the debts and obligations of the partnership if they participate in the management of the limited partnership,without being employed as a manager or an executive.

Correct AnswerverifiedShow Answer

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