Which of the Following Is a Voluntary Association of Two

question 70

Multiple Choice

Which of the following is a voluntary association of two or more people acting as co-owners of a business?

• A) partnership
• B) corporation
• C) sole proprietorship
• D) conglomerate

Understand the impact of options to cancel on the enforceability of promises.

Analyze the notion of legally sufficient consideration through practical examples.

Distinguish between moral obligations and legal obligations in contract law.

Recognize exceptions to the preexisting duty rule and their significance.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Sale of Land

A financial transaction involving the transfer of ownership of real estate property from one party to another.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset, reducing its original cost to its current book value over time.

Indirect Method

A cash flow statement approach that starts with net income and adjusts for changes in balance sheet accounts to reconcile to cash generated by operating activities.