Which of the Following Is Not a Characteristic of a Partnership

question 5

Multiple Choice

Which of the following is not a characteristic of a partnership?

• A) Each general partner has unlimited liability for the debts of the partnership.
• B) If one partner dies or leaves the partnership,the existing partnership is terminated.
• C) The partnership income is subject to a federal income tax that is levied on the business but not on the partners.
• D) The existing partnership agreement is dissolved and a new agreement is formed when a new partner joins the partnership.

Comprehend the significance and implications of apparent authority and dissociation in limited partnerships.

Recognize the legal frameworks enabling the formation of various business entities like LLLPs.

Identify the liabilities and rights of members in an LLC, including aspects of personal liability and capital contributions.

Understand the historical development and uniqueness of LLCs in different jurisdictions.

---

Definitions:

Perfectly Inelastic

Describes a situation where the demand for a good does not change in response to a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.

Demand Curve

A diagram displaying the connection between a product or service's price and the amount requested over a specified timeframe.

Price Elasticity

A gauge of the responsiveness of the amount of a product desired to alterations in its cost, reflecting demand's sensitivity to changes in price.