Question

Question 1 1 pts A partnership may hold title to real property in its own name. True False Question 2 1 pts Ownership and management of a business are separated in a corporation. O True O False

Answer 1

1] The statement is incorrect,

The partnership firm does not have status of separate legal enity,The liabilities of partners remians unlimited in the event of dissolution of firm.Since the partners are personally responsible for the debts of the firm, hence the name of firm is just matter of recognition.In realty the partners exist only.

Hence the firm cannot but property in its own name fue to its status.

2] The statement is correct,

Yes, in the corporates the ownership of corpoation may be hold by numerous people but the management may differ from those owners,Since the management personnals are the qualified and skillful person.They are neccessary for carrying the business of corporation successfully.since the corporates are the separate entity which has its own existence in terms of law and variouss company laws provides rules to engage such personnals,like CFO,COO, etc.

Hence from the above explanation, it can be derived that corporation may have separate status than the corporation.

Please comment for any explanation,

Thanks,