51.The partner capital accounts may change due to capital additions, net income, or withdrawals.
a.True
b.False
52.The equity reporting for a limited liability company is similar to that of a partnership but the changes in capital areshown on a statement of members' equity.
a.True
b.False
53.The chart of accounts for a partnership, with the exception of additional drawing and capital accounts, does
notdiffer from the chart of accounts for a sole proprietorship.
a.True
b.False
54.Revenue per employee may be used to measure partnership (LLC) efficiency.
a.True
b.False
55.Which of the following is a characteristic of a general partnership?
a.The partners have co-ownership of partnership property.
b.The partnership is subject to federal income tax.
c.The partnership has an unlimited life.
d.The partners have limited liability.
56.Which of the following is
nota characteristic of a general partnership?
a.the partnership is created by a contract
b.mutual agency
c.partners share equally in net income or net losses unless an agreement states differently
d.dissolution occurs only when all partners agree
57.Which of the following is an advantage of a general partnership when compared to a corporation?
a.A partnership is more likely to have a positive net income.
b.The partnership is relatively inexpensive to organize.
c.Creditors to a partnership cannot attach personal assets of partners.
d.The partnership usually hires professional managers.
58.Which of the following is a disadvantage of a partnership when compared to a corporation?
a.The partnership is more likely to have a net loss.
b.The partnership is easier to organize.
c.The partnership is less expensive to organize.
d.The partnership has limited life.
59.An advantage of the partnership form of business organization is
a.unlimited liability
b.mutual agency
c.ease of formation
d.limited life
60.The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all otherpartners to business contracts is called
a.unlimited liability
b.ease of formation
c.mutual agency
d.dissolution