B12. Refer to Fact Pattern 2-1B. Bryn’s dissociation from the firm results in a. the automatic termination of the firm’s existence. b. the partnership’s buyout of Bryn’s interest in the firm. c. the immediate maturity of all partnership debts. d. Bryn’s purchase of her interest in the partnership from the firm. answer: B PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B13. Refer to Fact Pattern 2-1B. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm’s assets. This results in a. nothing with respect to the firm’s existence. b. the continuation of the firm’s business. c. the termination of the firm’s existence. d. the temporary suspension of the firm’s business. answer: C PAGES: Section 4 BUSPROG: Reflective AICPA: BB-Legal B14. Edgar, Jon, and Phoebe do business as partners in Reliable Movers. Phoebe develops a debilitating illness and can no longer work. Phoebe a. may dissociate from the partnership. b. may not dissociate from the partnership without the other partners’ consent. c. must dissociate from the partnership. d. may terminate the partnership. answer: A PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B15. Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships (LLPs). The major features of an LLP are that it limits the personal liability of the partners and a. it allows the partnership to continue as a pass-through tax entity. b. LLP statutes do not vary from state to state.
B12. Refer to Fact Pattern 2-1B. Bryn’s dissociation from the firm results in a. the automatic termination of the firm’s existence. b. the partnership’s buyout of Bryn’s interest in the firm. c. the immediate maturity of all partnership debts. d. Bryn’s purchase of her interest in the partnership from the firm. answer: B PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B13. Refer to Fact Pattern 2-1B. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm’s assets. This results in a. nothing with respect to the firm’s existence. b. the continuation of the firm’s business. c. the termination of the firm’s existence. d. the temporary suspension of the firm’s business. answer: C PAGES: Section 4 BUSPROG: Reflective AICPA: BB-Legal B14. Edgar, Jon, and Phoebe do business as partners in Reliable Movers. Phoebe develops a debilitating illness and can no longer work. Phoebe a. may dissociate from the partnership. b. may not dissociate from the partnership without the other partners’ consent. c. must dissociate from the partnership. d. may terminate the partnership. answer: A PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B15. Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships (LLPs). The major features of an LLP are that it limits the personal liability of the partners and a. it allows the partnership to continue as a pass-through tax entity. b. LLP statutes do not vary from state to state.
test-bank-cengage-advantage-books-1st-miller.docx