Part 4 1 If a partnership is sued for negligence:

	a.	only the partnership assets can be used to satisfy any judgment resulting from the suit.
	b.	each limited partner can be personally liable for any judgment resulting from the suit.
	c.	each general partner can be personally liable for any judgment resulting from the suit.
	d.	only one partner can be held liable for any judgment resulting from the suit.

2 Which of the following securities represents debt issued by a corporation like Hewlett Packard, Inc.?

	a.	employee compensation
	b.	preferred stock
	c.	common stock
	d.	bonds

3 In a limited partnership, a limited partner has:

	a.	limited personal liability.
	b.	the right to the same share of profits as a general partner.
	c.	a legal right to compete with the partnership for personal gain.
	d.	an equal right in managing the partnership.

4 The shareholders of McDonald's corporation:

	a.	are McDonalds legal creditors.
	b.	are McDonalds legal owners.
	c.	are speculators who bought McDonalds stock because they expected its price to rise.
	d.	are personally liable for McDonalds debts or negligence torts.

5 The UCC imposes the same standard of conduct on merchants as it does on consumers.

True

False

6 Under the UCC, an offer to buy goods can be accepted by a prompt shipment of the goods.

True

False

7 Before any insurable interest or risk of loss in specific goods can pass from the seller to the buyer, the goods must exist and be identified to the contract.

True

False