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AICPA CPA-Business Exam Questions
CPA Business Environment and Concepts (Page 13 )

Updated On: 28-Feb-2026
Page 13 of 107
PDF with 530 Questions

Under the Revised Uniform Limited Partnership Act and in the absence of a contrary agreement by the partners, which of the following events is most likely to dissolve a limited partnership?

  1. A majority vote in favor by the partners.
  2. A two-thirds vote in favor by the partners.
  3. A withdrawal of a majority of the limited partners.
  4. Withdrawal of the only general partner.

Answer(s): D

Explanation:

Choice "d" is correct. Absent a contrary agreement of the partners, a limited partnership can be dissolved by written consent of all the general partners, withdrawal or death of a general partner, or judicial decree.
Thus, withdrawal of the only general partner would cause dissolution. (There has to be at least one general partner in a limited partnership.)

Choice "a" is incorrect. It takes unanimous written consent of all general partners to dissolve the limited partnership, not majority vote.
Choice "b" is incorrect. It takes unanimous written consent of all general partners to dissolve the limited partnership, not two-thirds vote.
Choice "c" is incorrect. Death or withdrawal of a limited partner does not cause dissolution. Only death or withdrawal of a general partner causes dissolution.
Limited Liability Company



Eller, Fort and Owens are members of Venture Associates, LLC. Trent Corp. brought a breach of contract suit against Venture for a contract executed by Eller as an agent of the LLC. If Trent prevails, Trent will generally be able to collect the judgment from:

  1. The LLC's assets only.
  2. The personal assets of Eller, Fort and Owens jointly.
  3. Eller's personal assets only after LLC assets are exhausted.
  4. Eller's personal assets only.

Answer(s): A

Explanation:

Choice "a" is correct.
Rule: Members of an LLC are not personally liable for the LLC's obligations. Moreover, an agent is not liable on a contract the agent enters into on behalf of a disclosed principal. Here, the contract was entered into by Eller on behalf of Venture, an LLC, and Eller disclosed that he was acting only as an agent of Venture. Thus, Trent Corp. can collect from the LLC'S assets only. Choices "b", "c", and "d" are incorrect, per the above rule.



Tim, Peter, and Rick want to form a limited liability company.
What document must they file with the state?

  1. Operating Agreement.
  2. Articles of Incorporation.
  3. Bylaws.
  4. Articles of Organization.

Answer(s): D

Explanation:

Choice "d" is correct. The Articles of Organization must be filed with the secretary of state. Choice "a" is incorrect. An operating agreement is an agreement between the members containing provisions relating to management, profit sharing, transferring interests, etC. and does not need to be filed with the state.
Choices "b" and "c" are incorrect. Articles of incorporation and bylaws are documents relating to corporations, and they are not required to be filed with the state.



The articles of organization for a limited liability company must contain everything, except the following:

  1. The name of the entity that includes some indication it is a LLC.
  2. The name and address of the registered agent.
  3. Number of shares authorized and issued.
  4. If the company is to be manager managed, a statement to that effect.

Answer(s): C

Explanation:

Choice "c" is correct. Limited liability companies do not issue "shares" held by shareholders like in a corporation. Instead, members (the owners) are said to have "interests" in the LLC. Choices "a", "b", and "d" are incorrect. These are all required to be included in the articles of organization.



Unless there is an agreement to the contrary, the voting power of members in a limited liability company is determined by:

  1. Each member's salary.
  2. Each member's share of profits.
  3. When the member was admitted to the company.
  4. Each member's capital contribution.

Answer(s): D

Explanation:

Choice "d" is correct.
Rule: Absent an agreement otherwise, all members generally participate in management, and their voting strength is determined in proportion to ownership interest. This is calculated by comparing each member's capital contribution to that of the other members. Choices "a", "b", and "c" are incorrect, per the above rule.



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