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Question 1 of 10
1. Question
Which of the following type of partnership must have at least one general partner and at least one limited partner, although they usually have more:
Correct
A limited partnership must have at least one general partner and at least one limited partner, although they usually have more.
Incorrect
A limited partnership must have at least one general partner and at least one limited partner, although they usually have more.
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Question 2 of 10
2. Question
Which of the following is not true related to general partner?
Correct
The general partner does the actual managing of the business and makes decisions that are legally binding for everyone in the partnership. He may be paid for services as a general partner, and may buy and sell property on behalf of the partnership. The general partner may not borrow money from the partnership (although the partnership may borrow from the general partner).
Incorrect
The general partner does the actual managing of the business and makes decisions that are legally binding for everyone in the partnership. He may be paid for services as a general partner, and may buy and sell property on behalf of the partnership. The general partner may not borrow money from the partnership (although the partnership may borrow from the general partner).
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Question 3 of 10
3. Question
Which of the following cannot make management decisions, but does have the right to sue the general partner if he believes that the general partner is not acting in the best interests of the partnership?
Correct
The limited partner cannot make management decisions, but does have the right to sue the general partner if he believes that the general partner is not acting in the best interests of the partnership. Limited partners are allowed to vote on certain partnership matters, and they can inspect the financial records and accounting books of the partnership if they so desire. But their main role is to put up the money, while the general partner actually runs the business.
Incorrect
The limited partner cannot make management decisions, but does have the right to sue the general partner if he believes that the general partner is not acting in the best interests of the partnership. Limited partners are allowed to vote on certain partnership matters, and they can inspect the financial records and accounting books of the partnership if they so desire. But their main role is to put up the money, while the general partner actually runs the business.
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Question 4 of 10
4. Question
Which of the following statement is true regarding the dissolution of limited partnership?
I. Terms for the dissolution of a limited partnership can vary according to the specific agreement of the partnership
II. Any partner can give a notice to the other partners of his intent to dissolve the partnership
III. Limited partnerships are ended simply by a limited partner’s death, retirement, or bankruptcy.
IV. Limited partners have lesser abilities to dissolve the partnership than partners do in general partnerships.Correct
Terms for the dissolution of a limited partnership can vary according to the specific agreement of the partnership, but other restrictions apply independently of those terms. While in general partnerships (i.e. non-limited partnerships), any partner can give a notice to the other partners of
his intent to dissolve the partnership, it is not the same with limited partnerships. Only general partners can issue such notice; limited partners are not able to do so. Moreover, unlike general partnerships, limited partnerships are not ended simply by a limited partner’s death, retirement, or
bankruptcy. The fundamental detail to know is that limited partners have lesser abilities to dissolve the partnership than partners do in general partnerships.Incorrect
Terms for the dissolution of a limited partnership can vary according to the specific agreement of the partnership, but other restrictions apply independently of those terms. While in general partnerships (i.e. non-limited partnerships), any partner can give a notice to the other partners of
his intent to dissolve the partnership, it is not the same with limited partnerships. Only general partners can issue such notice; limited partners are not able to do so. Moreover, unlike general partnerships, limited partnerships are not ended simply by a limited partner’s death, retirement, or
bankruptcy. The fundamental detail to know is that limited partners have lesser abilities to dissolve the partnership than partners do in general partnerships. -
Question 5 of 10
5. Question
Which of the following partnerships invest in the construction of low-income and retirement housing?
Correct
Public housing partnerships invest in the construction of low-income and retirement housing. Since these housing programs are government-assisted (e.g. missing rent payments are covered by the U.S. Department of Housing and Urban Development), they are considered the safest form of real-estate partnership.
Incorrect
Public housing partnerships invest in the construction of low-income and retirement housing. Since these housing programs are government-assisted (e.g. missing rent payments are covered by the U.S. Department of Housing and Urban Development), they are considered the safest form of real-estate partnership.
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Question 6 of 10
6. Question
Which of the following properties invest in mere land, not purchasing buildings or intending to build on the land?
Correct
Raw land partnerships invest in mere land, not purchasing buildings or intending to build on the land. Their aim is to make money on capital gains as the value of the land increases. These are the riskiest form of real-estate DPP.
Incorrect
Raw land partnerships invest in mere land, not purchasing buildings or intending to build on the land. Their aim is to make money on capital gains as the value of the land increases. These are the riskiest form of real-estate DPP.
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Question 7 of 10
7. Question
Which of the following partnerships seek to make a profit by purchasing and leasing various assets, such as computers, trucks, or machinery?
Correct
Equipment leasing partnerships seek to make a profit by purchasing and leasing various assets, such as computers, trucks, or machinery.
Incorrect
Equipment leasing partnerships seek to make a profit by purchasing and leasing various assets, such as computers, trucks, or machinery.
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Question 8 of 10
8. Question
Which of the following partnerships aim to make a profit through various investments?
Correct
Oil and gas partnerships aim to make a profit through various investments involving the extraction of oil and gas
Incorrect
Oil and gas partnerships aim to make a profit through various investments involving the extraction of oil and gas
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Question 9 of 10
9. Question
Which of the following statements is (are) related to the function of Oil and gas partnerships:
I. Income oil and gas DPPs purchase wells that already exist
II. Developmental oil and gas DPPs search for new reserves in areas near wells
III. Exploratory oil and gas DPPs search new areas to find new oil and drill
IV. Combination oil and gas DPPsCorrect
(i)Exploratory oil and gas DPPs search new areas to find new oil and drill for it. This is the riskiest oil and gas DPP, and its activity is also called “wildcatting.”(ii) Developmental oil and gas DPPs search for new reserves in areas near wells that are already extracting oil or gas. (iii) Income oil and gas DPPs purchase wells that already exist. IV) Combination oil and gas DPPs involve any assortment of the previous three.
Incorrect
(i)Exploratory oil and gas DPPs search new areas to find new oil and drill for it. This is the riskiest oil and gas DPP, and its activity is also called “wildcatting.”(ii) Developmental oil and gas DPPs search for new reserves in areas near wells that are already extracting oil or gas. (iii) Income oil and gas DPPs purchase wells that already exist. IV) Combination oil and gas DPPs involve any assortment of the previous three.
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Question 10 of 10
10. Question
Which of the following relates to the costs for items used in extracting oil or gas that have a salvage value upon disposal (e.g. storage tanks, drills)—basically, the equipment used in drilling?
Correct
Tangible drilling costs (TDCs) are any costs for items used in extracting oil or gas that have a salvage value upon disposal (e.g. storage tanks, drills)—basically, the equipment used in drilling. These costs can be deducted as the equipment is depreciated, with the deduction equaling the depreciation expense for that year.
Incorrect
Tangible drilling costs (TDCs) are any costs for items used in extracting oil or gas that have a salvage value upon disposal (e.g. storage tanks, drills)—basically, the equipment used in drilling. These costs can be deducted as the equipment is depreciated, with the deduction equaling the depreciation expense for that year.