Podcast
Questions and Answers
What is a key difference between a corporation and a partnership?
What is a key difference between a corporation and a partnership?
- The tax implications
- The life of the business (correct)
- The number of owners
- The management structure
How are the members of a limited liability company taxed?
How are the members of a limited liability company taxed?
- Based on the number of owners
- As a sole proprietor
- Like partners in a partnership (correct)
- Like corporate shareholders
What happens when one partner makes a decision in a general partnership?
What happens when one partner makes a decision in a general partnership?
- It affects all partners equally
- It only affects that partner
- It has no impact on the partnership
- It binds all other partners (correct)
How should assets be valued when forming a partnership if no agreed value is provided?
How should assets be valued when forming a partnership if no agreed value is provided?
What type of liability do general partners have?
What type of liability do general partners have?
What happens to liabilities attached to contributed assets in a partnership?
What happens to liabilities attached to contributed assets in a partnership?
In the given partnership agreement, how much is the salary allowance for King?
In the given partnership agreement, how much is the salary allowance for King?
What is the interest allowance rate for partners' capital balances according to the agreement?
What is the interest allowance rate for partners' capital balances according to the agreement?
Based on the agreement, how is the remainder of the net income distributed?
Based on the agreement, how is the remainder of the net income distributed?
What were the capital balances of King and Lee at the beginning of the year according to the information provided?
What were the capital balances of King and Lee at the beginning of the year according to the information provided?
What was the total net income of the partnership in 2020?
What was the total net income of the partnership in 2020?
In the chart provided, what is the total amount mentioned under Gant, Drawings?
In the chart provided, what is the total amount mentioned under Gant, Drawings?
What is a major disadvantage of a regular partnership?
What is a major disadvantage of a regular partnership?
In a Limited Partnership (LP), what is a major advantage of general partners?
In a Limited Partnership (LP), what is a major advantage of general partners?
What is the main reason Limited Liability Companies (LLCs) are more expensive to create than regular partnerships?
What is the main reason Limited Liability Companies (LLCs) are more expensive to create than regular partnerships?
Which characteristic is true for Limited Liability Partnerships (LLPs)?
Which characteristic is true for Limited Liability Partnerships (LLPs)?
What is a characteristic of a regular partnership that makes it simple and inexpensive to create and operate?
What is a characteristic of a regular partnership that makes it simple and inexpensive to create and operate?
Why are Limited Liability Partnerships (LLPs) mostly of interest to partners in old-line professions such as law, medicine, and accounting?
Why are Limited Liability Partnerships (LLPs) mostly of interest to partners in old-line professions such as law, medicine, and accounting?
What should a partnership agreement specify among partners?
What should a partnership agreement specify among partners?
Which feature makes Limited Partnerships (LP) suitable for companies investing in real estate?
Which feature makes Limited Partnerships (LP) suitable for companies investing in real estate?
What would make a General Partnership less desirable compared to other partnership forms?
What would make a General Partnership less desirable compared to other partnership forms?
Which characteristic makes Limited Liability Companies (LLCs) more costly to establish?
Which characteristic makes Limited Liability Companies (LLCs) more costly to establish?
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