11) In a limited liability partnership, each partner is not personally liable for the malpractice committed by another partner.
12) The income of a limited liability company cannot be taxed to the members as though they were partners.
13) An S corporation is a corporation with 100 or fewer stockholders that can elect to be taxed as a partnership.
14) An S corporation pays no corporate income tax.
15) A partnership business is a:
A) firm listed in a stock exchange, in which no owner owns a majority of equity to control the firm.
B) business with two or more owners that is not organized as a corporation.
C) corporation in which the owners have limited liability for the corporation's liabilities.
D) private firm in which all owners have equal ownership and limited liabilities in the event of a bankruptcy.
16) Which of the following is a characteristic of a partnership?
A) pays corporate taxes
B) listed in a stock exchange
C) organized as a corporation
D) a written agreement
17) Which of the following is true of a written partnership agreement?
A) It is an agreement in which the partners hold a direct agreement with the registration body, and the registration body acts as an interlocutor between the partners.
B) It is an informal agreement between the partners and is not legally binding.
C) It is a legally-binding agreement between the owners which explains the procedures for liquidating the partnership.
D) It is a legally-binding agreement between the proprietors and the stock exchange where it is listed regarding the profit sharing between the owners.
18) Which of the following is a specification in the articles of partnership?
A) procedure for withdrawal of assets by the partners
B) procedure for distribution of dividends
C) method of valuation of the assets
D) selection of an appropriate depreciation method
19) Which of the following is true of a partnership?
A) All partnership firms are public firms.
B) Partnership firms have a limited life.
C) The owners of the partnership have limited liabilities for the partnership's debts.
D) The maximum loss an owner of a partnership can incur is the invested amount.
20) Which of the following will result in the dissolution of a partnership?
A) admission of a new partner
B) purchase of plant assets for the business
C) contribution of an asset by an existing partner