Question
In: Economics
A disadvantage of a partnership is that any one partner can act on behalf of the...
A disadvantage of a partnership is that any one partner can act on behalf of the partnership in legal and financial dealings and the other partners will also be held responsible.
True
False
A limited liability company automatically continues in the event of the death of a member.
True
False
Solutions
Expert Solution
1) Sol: True
In partnership firm both partners have same responsibility.
2) Sol: True
A limited liability company is not automatically dissolve with the death of one of its members unless specific law designate this should happen.
Rahul Sunny answered 2 years agoRelated Solutions
Discuss the tax implications for the different types of partnership transactions, such as partner-partnership, partner-partner, partner-external...
Discuss the tax implications for the different types of
partnership transactions, such as partner-partnership,
partner-partner, partner-external partner. How are gains and losses
allotted for each pass-through entity?
is a one-third general partner in the DEF partnership. Both D and the partnership are cash...
is a one-third general partner in the DEF partnership. Both D
and the partnership are cash method, calendar year taxpayers. D
dies at a time when the partnership has earned $15,000 for the
current year, and his share of the untaxed and undistributed
partnership income for the year is $5,000. Under all of the sale or
liquidation agreements described below, D is to be paid $30,000 for
his interest, which includes his share of income. Immediately prior
to D’s death,...
Under the doctrine of ______________, a partner in a partnership can be sued and held liable...
Under the
doctrine of ______________, a partner in a partnership can be sued
and held liable for conduct which he did participate in, ratify, or
know about:
a. vicarious
liability
b. joint and several liability
c. strict liability
d. agency
Diana, a partner in the cash basis HDA Partnership, has a one-third interest in partnership profits...
Diana, a partner in the cash basis HDA Partnership, has a
one-third interest in partnership profits and losses. The
partnership's balance sheet at the end of the current year is as
follows: Basis FMV Basis FMV Cash $120,000 $120,000 Hannah, capital
$90,000 $250,000 Receivables 0 240,000 Diana, capital 90,000
250,000 Land 150,000 390,000 Alexis, capital 90,000 250,000 Total
$270,000 $750,000 Total $270,000 $750,000 Diana sells her interest
in the HDA Partnership to Kenneth at the end of the current year...
Homer is a 10% partner and Burns is a 90% partner in a partnership that owns...
Homer is a 10% partner and Burns is a 90% partner in a
partnership that owns a piece of land outside of Springfield with a
tax basis of $50,000 and a value of $750,000. Homer and Burns
formed the partnership years ago. The land is encumbered by a
$200,000 nonrecourse mortgage.
If Homer sells his entire interest to Moe for $55,000 how much
gain is recognized by Homer? What is the character of the gain?
What are the tax consequences...
In a partnership, a partner can contribute an initial investment, have a drawing account, and have...
In a partnership, a partner can contribute an initial
investment, have a drawing account, and have loans to the
partnership. Describe the accounting and reporting implications of
each of these partner transactions on the formation and reporting
of the partnership. Is providing a loan to a partnership on the
same level as the initial investment and ongoing profits and losses
by a partner? Why or why not?
In a partnership, a partner can contribute an initial investment, have a drawing account, and have...
In a partnership, a partner can contribute an initial
investment, have a drawing account, and have loans to the
partnership. Describe the accounting and reporting implications of
each of these partner transactions on the formation and reporting
of the partnership. Is providing a loan to a partnership on the
same level as the initial investment and ongoing profits and losses
by a partner? Why or why not?
A partner withdraws from a partnership by selling their interest in the partnership to a person...
A partner withdraws from a partnership by selling their
interest in the partnership to a person who is not currently
associated with the partnership. As a result of this transaction,
what will happen to the capital account balances of the other
partners in the partnership?
They will increase
They will decrease
They will remain the same
They may increase, decrease, or remain the same
What happens when an additional partner is admitted to a
partnership by a contribution of assets...
Which of the following accurately describes a limited partner in a partnership? A partner who is...
Which of the following accurately describes a limited partner in
a partnership?
A partner who is not personally liable for partnership debts
beyond the amount of money or other property that the partner
contributed to the partnership.
A partner who is personally liable for partnership debts.
A partner who can act on behalf of the business without the
knowledge or permission of the other partners.
A partner who participates in the daily running of the business
or in making business...
In a principal-agent relationship, the parties have agreed that the agent will act... on behalf of...
In a principal-agent relationship, the parties have agreed that
the agent will act...
on behalf of a customer.
in the agent's best interest.
as a fiduciary for the government.
as a fiduciary of the principal subject to the principal's
control and consent.
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