Reference no: EM133262993
Questions
1. When it comes to tax liability, limited liability companies (LLCs):
in all states are required to file annual reports with the secretary of state.
are taxed as partnerships.
do not require partners to report their share of the LLC's profits on personal tax returns.
are taxed as corporations.
2. A turnkey operation can be best described as a:
franchise in which the franchisor builds and equips the place of business and leases it to the franchisee.
limited liability partnership in which partners frequently rotate in and out.
franchise operated by a person as his or her own personal property.
franchise in which the franchisee carries out the advertisement campaigns.
3. A property interest that allows a person who owns real property to dispose of it either during his lifetime or on his death is a(n) _____ property interest.
fee simple
life estate
affirmative easement
leasehold
4. Which of the following statements is true of a life estate?
It gives a person the right to have someone who owns an adjoining piece of property refrain from making certain uses of his or her land.
It does not hold a person owning a life estate liable if he commits acts that will result in permanent injury to the property.
It gives a person the right to use property for an indefinite period.
It gives a person the right to use property only for his own lifetime or for a time that is measured by the lifetime of somebody else.
5. A person may have the right to use the land of another person but not to actually occupy it on a long-term basis. The property interest that grants a person this particular right is known as a(n) _____.
fee simple
license
lease
easement
6. Darius has the right to prevent his neighbor from erecting a building on his property that would block light and air from Darius's home. This is an example of a(n) _____.
necessity
negative easement
adverse possession
affirmative easement
7. In terms of interests in real property, a _____ is not an interest in land but a temporary right to use another person's land for a limited and specific purpose.
private restriction
fee simple
leasehold
license
8. Beatriz and James are married and own real property under a tenancy by the entirety. This means that _____.
upon the death of either, the property passes automatically to the surviving spouse
they are tenants in common with the added requirement of marriage
either spouse can transfer property by will if the other is still living
the tenancy cannot be severed even in case of a divorce
9. Which of the following is an example of community property?
Property acquired during the marriage through a spouse's industry or efforts
Property a spouse owned before the marriage
Property acquired by a spouse during the marriage as a gift or by inheritance
Property exchanged for separate property
10. Under condominium ownership, a purchaser takes title to his or her individual unit and becomes a _____ with other unit owners in shared facilities.
joint tenant
tenant in common
tenant by the entirety
tenant in partnership
11. A warranty deed:
conveys title and guarantees to make good any defects in the title.
warrants against only those encumbrances that arise after a grantee acquires the property.
is used to cure technical defect in the chain of title to property.
disallows a grantee the right to sue the grantor.
12. An implied warranty of habitability:
guarantees that a house is free of hidden defects that would render it unsafe for human habitation.
applies to any ordinary seller of a house, and not just builders, builder-vendors, and developers.
when breached, subjects the defendant to liability measured only by the cost of repairs.
is limited to the first buyer and does not extend to subsequent purchasers of a property.