NEW
Font size
S
M
L
XL
WorksheetsFIN 340 Practice 4 #17-24
Total questions: 21
Worksheet time: 42mins
Name
Class
Date
1.
#17 Which of the following is NOT a characteristic of a sole proprietorship?
a)
Business can be conducted and title to property held using your name in combination with the business name.
b)
Business can be conducted and title to property held using your own name but not your business name.
c)
Ownership of property is owned in severalty.
d)
Ownership of property can be in the form of tenancy in common.
2.
#18 1) Participates in the management of the partnership.
a)
General
b)
Limited
3.
#18 2) Silent Partner
a)
General Partnership
b)
Limited Partnership
4.
#18 3)Personally liable (both jointly and separately) if partnership debts exceed partnership assets.
a)
General
b)
Limited
5.
#18 4)Not liable if partnership debts exceed partnership assets.
a)
General
b)
Limited
6.
#18 5)Receives return on investment before other partners.
a)
General
b)
Limited
7.
#19 Note that corporations hold property in severalty. Which of the following is not a characteristic of this type of business?
a)
Physical, brick-and-mortar establishment
b)
Taxed at rates separate from individual income tax rates
c)
Can receive, hold, and transfer title to real property, and may give, or hold a mortgage to secure a debt owed to the corporation
d)
Can exist as a subchapter S corporation or C corporation
8.
#20 Which of the following is not a benefit an LLC offers a founder?
a)
May not have to file a separate tax return
b)
Flexibility to establish specific management rights in the operating agreement
c)
Sets specific management structure for operating the company
d)
Shields personal assets from liability
9.
#21 Joint ventures are a unique organization. Which of the following scenarios best describes a joint venture?
a)
The once-thriving Sunny Springs neighborhood has fallen on some hard times, but that won’t get the residents down. In an effort to restore the neighborhood to its former glory, the residents are joining together to buy abandoned properties, rehab them into livable houses, and sell them to new owners.
b)
This is it! Jen and Gio finally cut the ribbon on their new Italian pizzeria and bistro. This moment has been many years in the making and they hope it leads to many decades of happy diners, full bellies, and profitable transactions.
c)
“We did it!” Jill and Linda exclaimed. The sisters just signed the closing papers on a vacation condo in Florida. Their plans are falling into place and now they’ll have a warm place to stay in the winters and property to rent to vacationers during the spring and summer.
10.
#22 1) Title to land and building is held by a corporation.
a)
Cooperative
b)
Condominium
11.
#22 2) Title to unit held by unit owner
a)
Cooperative
b)
Condominium
12.
#22 3) Personal property
a)
Cooperative
b)
Condominium
13.
#22 4) Real property
a)
Cooperative
b)
Condominium
14.
#22 5)Ownership may be transferred similar to other properties.
a)
Cooperative
b)
Condominium
15.
#22 6)Ownership may follow occupancy agreement and can be approved/disapproved by board.
a)
Cooperative
b)
Condominium
16.
#23 Kalib, Manny, and Kirk formed a partnership and do business under the assumed named KMK Partners. Given that the state of Pennsylvania has adopted the Uniform Partnership Act, which of the following is not an appropriate title option for the property?
a)
“KMK Partners,” tenancy in partnership
b)
“Kirk Whitman,” tenancy in partnership
c)
“Kalib Nouri, Manny Davis and Kirk Whitman,” tenancy in partnership
17.
#24 1) In Pennsylvania, a general partnership can hold title to real property but a limited partnership cannot.
a)
T
b)
F
18.
#24 2)The Uniform Partnership Act allows a general partnership to hold title to real property in the partnership’s name as “tenancy in partnership.
a)
T
b)
F
19.
#24 3)Under the Uniform Limited Partnership Act, profits and losses are passed through the partnership to each partner, and each partner’s own tax situation will determine the tax consequences.
a)
T
b)
F
20.
#24 4) If a partnership is using an assumed business name, it must file that name with the county clerk where its business is located.
a)
T
b)
F
21.
#24 5) General partnerships are required to file a certificate of partnership with the Department of State and have a written partnership agreement.
a)
T
b)
F
Reset
