OH Bar Business Associations 2

Question 1

In a general partnership, unless the partnership agreement provides otherwise, how are profits and management rights allocated among partners?

Accepted Answer

Equally among all partners, regardless of capital contributions

Answer

Under default partnership rules, all partners have equal rights in management and share equally in profits and losses, regardless of the amount of their capital contributions.

Question 2

Under the Uniform Partnership Act as adopted in Ohio, a partner's personal liability for partnership debts is:

Accepted Answer

Joint and several for all partnership obligations

Answer

Under the UPA as adopted in Ohio, partners in a general partnership are jointly and severally liable for all partnership obligations, exposing personal assets to partnership creditors.

Question 3

A limited partnership in Ohio must have at a minimum:

Accepted Answer

At least one general partner and at least one limited partner

Answer

A limited partnership requires at least one general partner who bears unlimited personal liability for partnership obligations and at least one limited partner with limited liability.

Question 4

Under Ohio law, a limited partner who actively participates in the control of the partnership business risks:

Accepted Answer

Losing limited liability protection and becoming personally liable to third parties who believed the limited partner was a general partner

Answer

A limited partner who participates in the control of the business may lose limited liability protection and be held personally liable to third parties who reasonably believed the limited partner was a general partner.

Question 5

When a partnership agreement is silent as to the duration of the partnership, the partnership is treated as:

Accepted Answer

A partnership at will, which any partner may dissolve at any time by giving notice

Answer

Without an agreed term or specific undertaking, a partnership is a partnership at will, meaning any partner may dissociate and trigger dissolution at any time.

(OH Bar) Ohio Bar Exam Practice Test

(OH Bar) Ohio Bar Exam Practice Test

OH Bar Business Associations 2