TRUE OR FALSE
1. If a partnership defaults, general partners’ personal wealth can be seized to repay outstanding claims, such as claims by suppliers or debtholders.
Answer is TRUE
If a partnership defaults, general partners’ personal wealth can be seized to repay outstanding claims, such as claims by suppliers or debtholders
In a partnership, the general partner has unlimited liability. So that the general partner’s personal property would remain at risk of being seized.
TRUE OR FALSE 1. If a partnership defaults, general partners’ personal wealth can be seized to...
1. In a limited partnership, partners are classified as general or limited Limited partners manage the business and have unlimited personal liability for its debts.
Which of these are true and why 8. In a general partnership all the partners are classified as "general partners," each of whom has unlimited liability for the debts of the partnership. 9. The partnership's beginning tax basis in property it receives from a partner in exchange for an interest in partnership capital is the contributing partner's adjusted basis in the property. 10. As a general rule, when a person obtains an interest in partnership capital through rendition of services,...
a. Under a General Partnership, partners are liable only to the extent of their capital contributions. True False b. Under a Limited Liability Limited Partnership, the liability of all partners is limited to the amount of their investments in the firm. True False c. When a partner ceases to be associated in the carrying on of the partnership business, this is called: A. Joint and several liability B. A fiduciary duty C. Winding up D. Dissociation d. Which of the...
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
Question 13 1 pts When a general partnership ends, its assets will be divided in the following order: (a) payments to creditors; (b) repayment of the partners' capital contribution; (c) repayment of loans owed to partners; and (d) profits paid according to the partnership agreement. True O False Question 14 1 pts "Joint liability" means that one partner, when sued, may insist that all partners be added to the litigation. O True O False
TRUE OR FALSE PLEASE HELP 1. A new partner cannot be admitted into a partnership without the consent of all the partners, 2. A partnership may be dissolved without being liquidated. 3. When a new partner is given 30% interest in a partnership, he will receive 30% of all future profits and losses, 4. When a partner leaves a partnership, it is possible that total assets will be unaffected. S. A person admitted as a partner into an existing partnership...
1. True/ False The partnerships holding period for assets contributed to the partnership by a partner begins with the date the assets are contributed. 2. True/False A partner’s share of liabilities is generally based on her or his economic risk of loss in the case of recourse debt and loss-sharing ratio in the case of nonrecourse debt. 3. True/False A has been a partner in the ABC Partnership for only four months. During the current year, the partnership sold investment...
True or False: The Judiciary can pass general legislation.
Accounting Question (Cafeteria Plans) True or False 1. A cafeteria plan can provide employees and partners with a choice of participating in a Section 401(k), a health insurance arrangement or cash. 2. Former employees can participate in a cafeteria plan. 3. Sole proprietors can participate in a cafeteria plan. 4. A cafeteria plan provide employees with a choice of vacation pay or group term life insurance. 5. Salary reduction amounts that are exchanged for health benefits in a cafeteria plan...
The formation of a corporation is a way to circumvent personal liability True or False 1:31 True False