1)

Mark recently started a small business, and took out a short term six-month loan from ACME bank. The loan must be in writing to be enforceable in court.

Question options:

	True
	False

2)

Patel Catering LP earned $1M in Year 1. Nita Patel, a limited partner in Patel Catering LP, received $50,000 as her share of the profit in Year 1 from the LP. How will this be taxed?

Question options:

	Patel Catering will report the $1M on its tax return. Nita will not report her share of the profits on her individual tax return.
	There will be no tax since limited partnerships do not pay tax and limited partners do not pay tax on their share of profits
	Patel Catering will report the $1M on its tax return, and Nita will report the $50,000 on her individual tax return
	Nita will report the $50,000 on her individual tax return. Patel Catering will not file a tax return.