Which of the Following Is NOT a Characteristic of the Proprietary

question 8

Multiple Choice

Which of the following is NOT a characteristic of the proprietary theory that influences accounting for partnerships?

• A) Partners' salaries are viewed as a distribution of income rather than a component of net income.
• B) A partnership is not viewed as a separate, distinct, taxable entity.
• C) A partnership is characterized by limited liability.
• D) Changes in the ownership structure of a partnership result in the dissolution of the partnership.

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Definitions:

Divergent Plate Boundary

A tectonic margin where two lithosphere plates are moving apart from each other, typically resulting in the formation of new oceanic crust through volcanic activity.

Volcanic Eruptions

Explosive events where molten rock (magma), ash, and gases are ejected from a volcano's vent, impacting the surrounding environment and climate.

Landslides

The movement of rock, earth, or debris down a slope due to gravity, often precipitated by factors like water saturation, erosion, or earthquakes.

Magma Movement

The flow or migration of magma through the Earth's crust, which can lead to volcanic eruptions when it reaches the surface.