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Partnership Definitions
Types of Partners
Vocab
Legal Concept Questions
100

General Partnership

All the partners have control over the firm

100

General partner

Someone who has full personal liability for debts of the firm

100

Termination

When the winding-up process is completed and the partnership ceases to exist

100

If a partner becomes insane, the partnership is dissolved. (True or False)

True

200

Trading Partnership

Buys and sells goods and services commercially

200
Silent Partner

A partner who may be known to the public but takes no active part in management

200

Winding-up period

Termination or ending of the partnership; all partnership business is concluded

200

Can a partnership agreement be structured so as to continue the partnership business even if the partnership is dissolved? (yes or no)

Yes

300

Non-trading Partnership

Provides professional and noncommerical assistance, such as legal, medical, or accounting advice

300

Secret partner

A partner who is not known to the public but participates in management
300

Joint Venture

Occurs when two or more persons or firms combine their resources and skills to do a specific project

300

If you form a partnership to prepare income taxes for businesses over the next five years, does the agreement have to be in writing? (Yes or No)

Yes

400

Special Partnership

Some or all members of a partnership undertake a unique endeavor in the same area of business as the general partnership 

400

Dormant Partner

A partner who is neither known to the public as a partner nor active in management. 

400

What does IRS Stand for?

Internal Revenue Service
400

Under the UPA, a partnership can take title to property in its own name. (True or False)

False! This occurs under the revised UPA (RUPA). 

500

How are they defined?

Classified according to their purpose and according to the extent of the liability of the partners

500

Nominal Partners

People who hold themselves out to be as partners, or let others do so, but are not truly partners. Ex: parents sometimes become nominal partners to assist children who have taken over the family business

500
What does ULPA stand for? (find it in the book) 

Uniform Limited Partnership Act

500

Which of the following is known to the public but does not participate in management? a) silent partner b) dormant partner c) secret partner d) none of the above

A) Silent partner