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Exam 29: Sole Proprietorships, partnerships, and Limited Liability Companies

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Question 31

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Fact Pattern 29-2Krispin and Linley are partners in Mobile Devises, an online marketing firm. -Refer to Fact Pattern 29-2.Krispin signs a contract with Natural Valley Chocolate,a candy maker and seller,apparently on Mobile's behalf.The contract is binding on 

A)  ​Krispin, Linley, and Mobile. 
B)  ​Krispin only. 
C)  ​Mobile only. 
D)  ​Natural Valley only.

E) A) and C)
F) None of the above

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Question 32

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Fact Pattern 29-2Krispin and Linley are partners in Mobile Devises, an online marketing firm. -Refer to Fact Pattern 29-2.Linley dissociates from Mobile.Krispin signs a contract with Organic Olives,a food seller,apparently on Mobile's behalf.Organic Olives does not know of Linley's dissociation.The contract is binding on 

A)  ​Krispin, Linley, and Mobile. 
B)  ​Krispin only. 
C)  ​Mobile only. 
D)  ​Organic Olives only.

E) B) and C)
F) B) and D)

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Question 33

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Outreach Security & Rescue,LLC,is a limited liability company.Unless the members have agreed otherwise,participants in the firm's management will be considered to include 

Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.

Silvano owns Textbooks Plus,a sole proprietorship that sells textbooks and other school supplies.When Silvano dies,Textbooks Plus will automatically 

The majority rule controls decisions on ordinary matters connected with partnership business.

A sole proprietor is free to make any decision he or she wishes concerning the business.

Marta is a partner in Kasper's Kleaning.When Marta dies her heirs are 

In a limited liability company,members are not allowed to participate in the management of the company.

Bo and Clancy decide to do business as Marketing & Promotion Services.To be a partnership,this association can result from an agreement that is​ 

Limited liability companies are governed solely by federal statutes.

Chet is a partner in Diligent Accounting Service.Chet can inspect 

Nell is considering forms of business organization for Optic Center,a medical eye clinic.An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for 

The owners of a limited liability company enjoy limited liability.

Any suit against the business or its employees does not lead to unlimited personal liability for the owner of a sole proprietorship.

In most states,a limited liability company can have only a limited number of members.

Qatar Global Investments is a foreign entity-a firm owned and operated by investors in a foreign country.With respect to a limited liability company in the United States,Qatar Global can 

In a limited partnership,no partner has full responsibility for the partnership and for all its debts.

In choosing a form of business organization for a new enterprise,important factors include the ability to raise capital.

Jim and Kyle are partners in J&K Sales,which exports technical equipment under a three-year partnership agreement.The U.S.government declares that the equipment can no longer be exported.J&K