True/False
Indicate whether the sentence or statement is true
or false.
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1.
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A
general partnership is not usually considered a legal entity apart from its owners.
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2.
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Agreements to form a partnership must be written.
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3.
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The
fiduciary ties that bind an agent and a principal also bind partners.
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4.
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Unless the partnership agreement states otherwise, general partners share losses in
the same ratio as profits.
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5.
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A
partner does not have a right to an accounting to enforce rights independent of the partnership
relationship.
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6.
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Each
partner has the right to sell partnership property as if he or she was the exclusive
owner.
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7.
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Partnership books and records must be kept accessible only to those partners who are
involved in the actual management of a firm.
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8.
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A
partner owes a partnership and its partners a duty of loyalty.
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9.
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A
general partner is personally liable for partnership debts if its assets are insufficient to pay its
creditors.
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10.
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A
partner cannot "wrongfully" dissociate from a partnership.
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11.
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A
partnership dissolves when a partner ceases to be associated with the carrying on of partnership
business.
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12.
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In
winding up a general partnership, creditors are paid before partners receive their capital
contributions.
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13.
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A
limited liability partnership can be formed in virtually any state.
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14.
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In a
limited liability partnership, a partner can be exempt from personal liability for partnership
obligations.
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15.
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With
a few exceptions, all of the rules that govern partnerships apply to limited liability
partnerships.
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16.
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In a
limited partnership, the liability of a limited partner is limited to the amount of capital he
or she has invested in the partnership.
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17.
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A
limited partner who gives a general partner advice on matters relating to the management of the
partnership cannot be liable as a general partner.
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18.
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Only
a limited partnership's limited partners have a fiduciary obligation to the other
partners.
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19.
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When
a limited partnership is dissolved, creditors are entitled to distributions of partnership assets
before others are paid.
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20.
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In a
limited liability limited partnership, the liability of a general partner is limited to the
amount of capital he or she has invested in the partnership.
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