The Partnership Form of Business Organization Should Be Entered into with Caution

question 48

Multiple Choice

The partnership form of business organization should be entered into with caution because:

• A) the firm will be bound to perform any contract entered into by a partner with third parties
• B) a third party may claim damages against the partnership for injury incurred as the result of any tort committed by a partner
• C) partners may leave the firm to avoid debts or claims against the partnership
• D) the admission of a new partner to the firm does not automatically render the new partner liable for the existing debts of the partnership

Recognize the impacts of outsourcing on organizational culture and control over proprietary knowledge.

Analyze the risks associated with outsourcing, including service, legal, and information security risks.

Assess the reasons for outsourcing specific functions, such as HR activities, and the criteria for choosing outsourcing services.

Understand the role of outsourcing in achieving financial savings, strategic focus, and access to advanced technology.