Which of the Following Statements Is True of General Partnership

question 66

Multiple Choice

Which of the following statements is true of general partnership?

• A) A business should make a profit in order to qualify as a general partnership.
• B) The general partners need not be the co-owners of the business.
• C) Charity organizations and schools are mostly formed from general partnerships.
• D) A general partnership can be either oral or implied from the conduct of the parties.

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Definitions:

Industrial Capitalists

Individuals or entities investing in industries for production, with the aim of generating profit through ownership of capital goods.

Labor Unions

Organizations formed by workers from related fields to protect their common interests and improve their working conditions through collective bargaining.

Bank Failures

occur when banks are unable to meet their obligations to depositors and creditors and must close or be taken over by regulatory agencies.

Farm Subsidies

Financial assistance from the government to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.