Practice Quiz

Paralegal Exam Prep - Question List

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236. Which of the following is NOT true about partnerships?
  1. Partnerships are controlled by state law.
  2. A non-profit organization can be a partnership.
  3. A partnership has two or more people.
  4. Each partner is personally liable for the debts of the partnership.
  5. Each partner claims a share of the partnership's business income.
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237. Which state never adopted the Uniform Partnership Act of 1914?
  1. Alaska
  2. New York
  3. Louisiana
  4. Nevada
  5. All states have adopted it.
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238. What is a major distinguishing feature of a limited liability partnership (LLP)?
  1. An LLP allows the members of the LLP to take an active role in the business of the partnership, without exposing them to personal liability for others' acts except to the extent of their investment in the LLP.
  2. An LLP allows the partnership to have unlimited partners without extending liability to all of the partners.
  3. An LLP statutorily limits personal liability to $100,000 per partner.
  4. An LLP does not require a partnership agreement.
  5. An LLP allows the members of the LLP to take an active role in the business of the partnership, while limiting the personal liability to $100,000.
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239. What is the difference between a C corporation and an S corporation?
  1. A C corporation is for large businesses and an S corporation is not.
  2. A C corporation must register with the Internal Revenue Service and an S corporation is not required to.
  3. A C corporation must file disclosures with the SEC and an S corporation is not required to.
  4. An S corporation must file disclosures with the SEC and a C corporation is not required to.
  5. A C corporation is taxed separately from its owners and an S corporation is not.
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240. Which is true of a limited liability corporation (LLC)?
  1. It shields its owners' personal assets.
  2. A nonprofit can be organized as a limited liability corporation.
  3. It is the same as a sole proprietorship.
  4. Owners do not have to report income from limited liability corporations.
  5. None of the above.
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