What characteristics of a partnership justify the absorption by the other partners of the deficiency that cannot be made good by an insolvent partner? a. Limited life and mutual agency b. Limited life and co-ownership of property c. Mutual agency and partnership non-taxability d. Mutual agency and unlimited liability

What characteristics of a partnership justify the absorption by the other partners of the deficiency that cannot be made good by an insolvent partner? a. Limited life and mutual agency b. Limited life and co-ownership of property c. Mutual agency and partnership non-taxability d. Mutual agency and unlimited liability

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 5BCRQ

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Which of the following is a disadvantage of the partnership form of organization? A. limited life B. no taxation at the partnership level C. flexibility in business operations D. combining of financial resources
Can a partners personal assets in a limited liability partnership be at risk?
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A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits, and losses. Is the agreement valid as among the partners only and not against third persons? A. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses. B. Yes, valid as long as third persons are not prejudiced. C. Not valid stipulation exempting a partner from sharing profits and losses. D. Not valid as against third persons or partnership creditors.
choose the response that correctly the following sentence about an individual partner's outside basis in a partnership. a partner's outside basis? (a) can be less than zero, (b) does not change as long as the partner maintains their partnership interest, (c) is used to apply the basis limitation to losses from a partnership, (d) must be tracked by the partnership.
Which of the following is NOT true about the statement of financial position of a partnership? O Allowance for doubtful accounts is a component of the partnership statement of financial position at formation. O Upon formation, the statement of financial position of a partnership shows asset values at agreed or fair market value. O The assets of the partnership must always be equal to its liabilities and partners' equity. O Accumulated depreciation of the partnership's depreciable assets is reflected in the statement of financial position of the partnership at formation.
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Which of the following statements regarding limited partnerships is true? A) There is no limit on a limited partner's liability. B) A limited partner's liability is limited by the amount of their investment. C) A limited partner is not liable until all the assets of the general partners have been exhausted. D) A general partner's liability is limited by the amount of their investment.
s Claims against partners' personal assets by creditors if the partnership can't pay its debts refers to a. liquidation. b. dissolution. c. mutual agency. d. unlimited liability. 6 A liquidation differs from a dissolution in that in a liquidation a. assets may be revalued. b. the business will not continue. c. there may be an adjustment of partners' capital accounts. d. gains and losses are distributed according to the partnership agreement. 7. A partner's loss absorption balance is calculated by a. dividing the partner's capital balance by his percentage interest in capital. b. multiplying distributable assets by the partner's profit sharing percentage. C. dividing the partner's total interests by his profit and loss sharing percentage. d. multiplying the partner's total interests by his profit and loss sharing percentage. 8. In accounting for liquidation of a partnership, cash payments to partners after all outside creditors' claims have been satisfied, but before final cash…
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