Winston College 12. A partnership involves two or more people carrying on business in common, but not incorporated a. True b. False 13. In a partnership or sole proprietorship the partners or sole proprietor have....... .... liability a. Limited b. Unlimited c. No liability d. None of above 14. The sole proprietor is 1) his/her own boss, not answerable to anyone else and 2) is generally free from government intervention and regulations a. True b. False c. First half true, second half false d. First half false, second half true 15. Partners have a right to inspect records a. True b. False 16. One partner can be responsible for any contracts entered into by other partners based on the concepts of ........ a. Agency b. Vicarious liability c. Contingent liability d. None of above 17. In corporations where a shareholder invests a certain amount of money, in the case of bankruptcy the most that the shareholder can lose is the amount .............. a. He/she invested b. Profit c. Personal property d. Real property