QUESTION 1

A hybrid form of business organization with certain features like a corporation is a(n)

		limited liability partnership.
		limited liability company.
		"S" corporation.
		sub-chapter "S" corporation.

1 points

QUESTION 2

A partnership

		has only one owner.
		pays taxes on partnership income.
		must file an information tax return.
		is not an accounting entity for financial reporting purposes.

1 points

QUESTION 3

A general partner in a limited partnership

		has unlimited liability for all partnership debts.
		is always the general manager of the firm.
		is the partner who lacks a specialization.
		is liable for partnership liabilities only to the extent of that partner's capital equity.

1

QUESTION 4

The individual assets invested by a partner in a partnership

		revert back to that partner if the partnership liquidates.
		determine that partner's share of net income or loss for the year.
		are jointly owned by all partners.
		determine the scope of authority of that partner.

1 points

QUESTION 5

Which of the following is not a principal characteristic of the "regular" partnership form of business organization?

		Mutual agency
		Association of individuals
		Limited liability
		Limited life

1 points

QUESTION 6

In a partnership, mutual agency means

		each partner acts on his own behalf when engaging in partnership business.
		the act of any partner is binding on all other partners, only if partners act within their scope of authority.
		an act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership.
		that partners must pay taxes on a mutual or combined basis.

1 points

QUESTION 7

Limited partnerships

		must have at least one general partner.
		guarantee that a partner will receive a return.
		guarantee that a partner will get back his original investment.
		are limited to only three partners.

1 points

QUESTION 8

An income ratio based on capital balances might be appropriate when

		service is a primary consideration.
		some, but not all, partners plan to work in the business.
		funds invested in the partnership are considered the critical factor.
		little net income is expected.

1 points

QUESTION 9

The balance sheet of a partnership will

		report retained earnings below the partnership capital accounts.
		show a separate capital account for each partner.
		show a separate drawing account for each partner.
		show the amount of income that was distributed to each partner.

1 points

QUESTION 10

A partners' capital statement explains

		the amount of legal liability of each of the partners.
		the types of assets invested in the business by each partner.
		how the partnership will be capitalized if a new partner is admitted to the partnership.
		the changes in each partner's capital account and in total partnership capital during a period