Which of the Following Is NOT True About Partnerships

question 23

Multiple Choice

Which of the following is NOT true about partnerships?

• A)Personal creditors of the individual partner have first call against partnership assets.
• B)A partnership is sometimes treated as a separate entity.
• C)A partnership may be sued in the firm's name,and,upon exhaustion of assets,the plaintiff may now go after the personal assets of any of the partners.
• D)Dower rights do not apply to partnerships.
• E)Generally,a person is liable only for the obligations of a partnership created while she or he is a member of the firm.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a company, such as raw materials and labor costs.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and loan payments.

Fixed Operating Expense

Financial obligations that stay the same irrespective of production or sales figures, encompassing rental charges, payroll, and insurance premiums.

High-Low Method

An accounting technique used to estimate the fixed and variable components of a cost based on the highest and lowest activity levels.