Which of the Following Is True About the Ability of a Partner

question 116

Multiple Choice

Which of the following is true about the ability of a partner to withdraw from a general partnership?

• A) Partners always have both the power and the right to withdraw from a partnership.
• B) Partners always have the right, but not necessarily the power, to withdraw from a partnership.
• C) Partners always have the power, but not necessarily the right, to withdraw from a partnership.
• D) In some cases, partners have neither the right nor the power to withdraw from a partnership.
• E) Partners always have the power to withdraw from a partnership and, under the Uniform Partnership Act, the right to withdraw from a partnership within thirty days after it is formed.

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Definitions:

Cash Flow Estimates

Projections of the amount of money expected to flow in and out of a business over a specific period.

Financial Analyst

A person who studies the financial results of businesses and makes recommendations on their values as investments.

Capital Budgeting

The process by which investors and managers evaluate the profitability and financial viability of long-term investments and projects.

NPV

Net Present Value; a financial metric used to assess the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.