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TRUE-FALSE QUESTIONS 1. In a sole proprietorship, the owner and the business are

ID: 398040 • Letter: T

Question

TRUE-FALSE QUESTIONS 1. In a sole proprietorship, the owner and the business are entirely separate. 2. A partnership is an association of two or more persons to carry on, as co-owners, a business for profit. 3. A general partnership cannot exist unless a certificate of partnership is filed appropriately in a state. 4. The sharing of profits from joint ownership of property is usually enough to create a partnership. 5. A writing is always necessary to form a partnership. 6. Unless a partnership agreement specifies otherwise, each partner has one vote in management matters. -7. Unless a partnership agreement specifies otherwise, profits are shared in the same ratio as capital contributions. 8. In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she invests in the partnership. 9. A limited liability company offers the limited liability of a corporation and the tax advantages of a partnership.

Explanation / Answer

1.In a sole proprietorship, the owner and the business are entirely separate. - F

2. A partnership is an association of two or more persons to carry on, as co-owners, a business for profit. - T

3. A general partnership cannot exist unless a certificate of partnership is filed appropriately in a state. - F

4. The sharing of profits from joint ownership of property is usually enough to create a partnership. - F

5. A writing is always necessary to form a partnership. -F

6. Unless a partnership agreement specifies otherwise, each partner has one vote in management matters.-T

7. Unless a partnership agreement specifies otherwise, profits are shared in the same ratio as capital contributions. -F

8. In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she invests in the partnership.-F

9. A limited liability company offers the limited liability of a corporation and the tax advantages of a partnership. -T

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