1. The sale of a partner's transferable interest in a business entitles the buyer to what rights?
A. The right to inspect the partnership's accounting books
B. The right to represent the partnership in a legal proceeding
C. distributions of those profits to which the selling partner was entitled
D. The right to manage the partnership.
2. A limited partner who takes an active part in managing a limited partnership:
A. will be treated as a general partner with respect to parties who reasonably believed that she was a general partner
B. will be entitled to reasonable compensation for the value of the services provided
C. will lose the right to receive profit distributions as a limited partner
D. will be entitled to profit distributions as if she were a general partner
E. will be treated as a general partner with respect to all parties with whom she dealt
3. If a member of an LLC executes a personal guarantee for the debt of an LLC, which of the following is true?
A. The personal guarantee would be unenforceable because it would circumvent the limited liability of the member.
B. Because of the member's apparent authority, the personal guarantee would create liability for all other members if the LLC is a member-managed LLC.
C. The member will have personal liability according to the terms of the guarantee, but would not be personally liable for any other obligations of the LLC.
D. The personal guarantee would result in personal liability of the member for any obligation of the LLC.
4. Which of the following is not a consequence of being a partner of a partnership?
A. Each partner owes fiduciary duties to the partnership and to the other partners.
B. Partners are not liable for each other's torts.
C. Partners are agents of each other.
D. Each partner owns a portion of the value of the business.