1) A general partner in a limited partnership ________.

A) has less personal liability for the debts of the business than the limited partners

B) is the majority shareholder and is not involved in the daily business activities

C) has unlimited personal liability in the partnership

D) is the first owner to receive a share of profits and losses

2) A ________ is a form of business organization that combines the advantages of both a partnership and a corporation.

A) limited liability company

B) limited liability partnership C)

C Corporation

D) general partnership

3) Which of the following is an advantage of a limited liability company compared to a corporation?

A) Unlike a corporation, the members of a limited liability company are personally liable for the business's debts.

B) Unlike a corporation, the members of a limited liability company need not file articles of organization with the state.

C) Unlike a corporation, the members of a limited liability company cannot participate actively in management of the business.

D) Unlike a corporation, the members of a limited liability company are taxed at the individual level only.

4) The financial statements of a partnership are similar to the statements of a sole proprietorship.

5) A(n) ________ does NOT require any permission from the state to be set up.

A) LLC B) partnership C) S Corporation D) C Corporation

6) Andy and Ian formed a partnership on April 1, 2019. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 has been recorded. The current market value of the equipment is $74,000. The value of the equipment recorded in the partnership journal is ________. A) $66,000 B) $74,000 C) $58,000 D) $82,000

7) Jack holds an ownership interest of 63% and Teresa holds an ownership interest of 37% in the J and T Partnership. This year, in order to further develop the business, Jack contributes an additional $6800 and Teresa contributes an additional $3200 to the partnership. Which of the following is TRUE of this scenario?

A) Either the total contribution of $10,000 or the contribution in relationship to the ownership interest ratio will be recorded.

B) Only the total contribution of $10,000 will be recorded.

C) Individual contributions of $6800 by Jack and $3200 by Teresa will be recorded.

D) 63% of Jack's contribution and 37% of Teresa's contribution will be recorded.