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Certified Business Manager (CBM) Questions 166–170 (page: 35)

Updated On: 10-Feb-2026

Dissolution by Operation of Law a partnership is dissolved by operation of law upon:

  1. the death of a partner
  2. the bankruptcy of a partner or of the partnership
  3. the subsequent illegality of the partnership
  4. All of the above

Answer(s): D



Completing unfinished business, collecting debts, and distributing assets to creditors and partners is called:

  1. Bankruptcy
  2. Liquidation
  3. Insolvency
  4. All of the above

Answer(s): B



Which authority is reasonably deduced from the nature of the partnership, the terms of the partnership agreement, or the relations of the partners?

  1. Actual Express Authority
  2. Actual Applied Authority
  3. Apparent Authority
  4. Formal Account Authority

Answer(s): B



Which of the following events triggers dissolution?

  1. expiration of the time period
  2. withdrawal of a general partner, unless all partners agree to continue the business
  3. decree of judicial dissolution
  4. All of the above

Answer(s): D



Which one is created to administer a unit of local civil government or one created by the United States to conduct business?

  1. Profit Corporation
  2. Private Corporation
  3. Public Corporation
  4. Domestic Corporation

Answer(s): C



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