Understanding Business and Personal Law
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Chapter 27: Sole Proprietorship and Partnership
      
  1.A silent partner has no liability for the debts of the firm.  
  a.   TRUE  
  b.   FALSE  
      
  2.A sole proprietorship is a  
  a.   form of business whose profits are exempt from federal tax laws.  
  b.   business which is exempt from zoning requirements.  
  c.   form of business owned by one person.  
  d.   business that does not require a license to operate.  
      
  3.A person who goes into business as a sole proprietor must operate under  
  a.   both his or her name and a fictitious name.  
  b.   either his or her name or a fictitious name.  
  c.   a fictitious name.  
  d.   his or her name.  
      
  4.The biggest disadvantage of a sole proprietorship is  
  a.   unlimited liability.  
  b.   limited lifetime.  
  c.   limited human resources.  
  d.   limited capital.  
      
  5.The articles of partnership are known as the  
  a.   the general agreement.  
  b.   registered liability agreement.  
  c.   the liability agreement.  
  d.   partnership agreement.  
      
  6.A partnership by estoppel is not a real partnership.  
  a.   TRUE  
  b.   FALSE  
      
  7.A sole proprietorship is the easiest form of business association to form.  
  a.   TRUE  
  b.   FALSE  
      
  8.Partnership property includes  
  a.   all property belonging to the partnership and to the individual partners when the partnership was formed.  
  b.   property contributed directly to the partnership when the partnership is created.  
  c.   all property belonging to the partnership and one-half the property belonging to the individual partners.  
  d.   property purchased prior to the creation of the partnership.  
      
  9.In a partnership, all partners share equally in the profits, unless there is an agreement to the contrary.  
  a.   TRUE  
  b.   FALSE  
      
  10.Dissolution of a partnership brings the business to an end.  
  a.   TRUE  
  b.   FALSE  

 
 
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