Intro to Partnership

An industrial partner cannot be a general partner.

• True

• False

The characteristic of unlimited liability is a disadvantage on the point of view of the creditor.

• True

• False

It is easier to change ownership in a corporation than in a partnership.

• True

• False

Which of the following is not a characteristic of all partnerships?

• taxable entity

• co-ownership of property

• mutual agency

• voluntary association

The partners have the following rights, except one:

• share in profits

• receive net assets at liquidation point

• co-manage the business

• transfer ownership at will

A partnership has an indefinite life like a corporation.

• True

• False

Access to more capital is an advantage of a partnership over a sole proprietorship.

• True

• False.

A capitalist partner cannot be a limited partner.

• True

• False

An ostensible partner is one who is known to the public that he is a partner, and has active management participation.

• True

• False

A dormant partner is one who is not known to the public that he is a partner, but is actively participating in the management of the partnership.

• True

• False