LGS 200 Charlye Adams exam 3 Questions and Answers (Solved Papers) Entrepreneur - Correct Answers ✅a person who forms and operates a business Sole Proprietorship - Correct Answers ✅individual business owner is the business. simplest and easiest business entity General Partnership - Correct Answers ✅voluntary association of two or more persons to carry on a as co-owners of a business for profit Statute of frauds - Correct Answers ✅If a general partnership is going to continue for more than one year, the partnership agreement must be in writing Partnership Taxation - Correct Answers ✅pass through taxation. profits and losses are reported on the personal income tax returns of the partners Management Rights of Partnership - Correct Answers ✅equal rights. each partner has one vote, majority rules.unanimous consent to alter the nature of the firm.Partnership interest - Correct Answers ✅Unless otherwise agreed, profits and losses are shared equally, regardless of the amount of a partner's capital contribution 1 / 2
LGS 200 Charlye Adams exam 3 Questions and Answers (Solved Papers) Inspection of the books - Correct Answers ✅each partner, active or inactive, is entitled to inspect all books and make copies. representative of a deceased partner has the same right Duty of care - Correct Answers ✅partner must refrain from "grossly negligent or reckless conduct, intentional, misconduct, or a knowing violation of law" Duty of loyalty - Correct Answers ✅requires a partner account to the partnership for "any property, profit, or benefit" and refrain from competing with the partnership Liability of partners - Correct Answers ✅Joint liability. all partners are liable for partnership obligation- contracts, torts, and breaches of trust. partnership assets are exhausted first Income partner liability - Correct Answers ✅only liable to the extent of his/her capital contribution for preexisting partnership debts and obligations Limited Partnership - Correct Answers ✅the voluntary association of two or more people as co-owners of a business for profit. Must be one general partner and one limited partner
- / 2