LAW 531 Week 1 Knowledge Check 
Week 1 Knowledge Check Study Guide
Concepts
Mastery
Sole proprietorships and general partnerships
Corporations
Questions
100%
1
2
3
100%
4
5
6
100%
7
8
9
100%
10
11
12
100%
13
14
15
100%
16
17
18
Limited partnerships and special partnerships
Score: 18 / 18
Limited liability companies and limited liability partnerships Franchising, licensing, and joint ventures
Alternative forms of dispute resolution
Concept: Sole proprietorships and general partnerships
Mastery
100%
Questions
1
2
3
1.
Identify an accurate statement about a sole proprietorship.
A. It is a form of business that is seldom found in the
United States.
B. It is a form of business that has only one owner.
C. It is a separate legal entity, distinct from an owner.
D. It is a business form in which the owner enjoys limited liability. Correct:
The Correct Answer is: B.
A sole proprietorship is a form of business that has a single owner, known as the sole proprietor. The business is not a separate legal entity distinct from the owner.
2.
Sara and Cilia run a café together. They share ownership of and liability for the café and have come to an agreement about how the profits from the cafe should be divided between them. If the cafe runs into debt, both Sara and Celia are responsible for the debt.
What form of business is best demonstrated in this scenario?
A. A sole proprietorship
B. A corporation
C. A general partnership
D. A limited liability company
Correct:
The Correct Answer is: C.
A general partnership is a form of business that involves two or more individuals acting as co-owners. The Uniform Partnership Act codifies law for general partnerships. 3.
What criterion under the Uniform Partnership Act (UPA) must be met by a business, for it to qualify as a general partnership?
A. The objective of the partnership should be to create profits. B. One of the owners must be willing to assume completely liability of the business.
C. The partnership should not
Concepts
Mastery
Sole proprietorships and general partnerships
Corporations
Questions
100%
1
2
3
100%
4
5
6
100%
7
8
9
100%
10
11
12
100%
13
14
15
100%
16
17
18
Limited partnerships and special partnerships
Score: 18 / 18
Limited liability companies and limited liability partnerships Franchising, licensing, and joint ventures
Alternative forms of dispute resolution
Concept: Sole proprietorships and general partnerships
Mastery
100%
Questions
1
2
3
1.
Identify an accurate statement about a sole proprietorship.
A. It is a form of business that is seldom found in the
United States.
B. It is a form of business that has only one owner.
C. It is a separate legal entity, distinct from an owner.
D. It is a business form in which the owner enjoys limited liability. Correct:
The Correct Answer is: B.
A sole proprietorship is a form of business that has a single owner, known as the sole proprietor. The business is not a separate legal entity distinct from the owner.
2.
Sara and Cilia run a café together. They share ownership of and liability for the café and have come to an agreement about how the profits from the cafe should be divided between them. If the cafe runs into debt, both Sara and Celia are responsible for the debt.
What form of business is best demonstrated in this scenario?
A. A sole proprietorship
B. A corporation
C. A general partnership
D. A limited liability company
Correct:
The Correct Answer is: C.
A general partnership is a form of business that involves two or more individuals acting as co-owners. The Uniform Partnership Act codifies law for general partnerships. 3.
What criterion under the Uniform Partnership Act (UPA) must be met by a business, for it to qualify as a general partnership?
A. The objective of the partnership should be to create profits. B. One of the owners must be willing to assume completely liability of the business.
C. The partnership should not