Which of the Following Statements Is True of a Partnership

question 29

Multiple Choice

Which of the following statements is true of a partnership?

• A)The partners will not be held responsible for the actions of each other.
• B)All the partners will have limited liability.
• C)The business will face fewer regulatory controls than a corporation.
• D)All partners need to submit quarterly financial statements to stockholders.
• E)The owners will tend to have lower earning power than sole proprietors.

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Definitions:

Federalist Papers

A collection of 85 articles and essays written by Alexander Hamilton, James Madison, and John Jay promoting the ratification of the United States Constitution.

Organized Interests

Organized interests refer to groups or associations formed by individuals or organizations to advocate for their common interests or goals in political, economic, or social spheres.

Constitution

Essential principles or proven precedents that dictate how a state or another entity is managed.

Potential Interest Groups

Organizations or collections of individuals who could come together to promote and pursue common interests or goals, particularly in the political arena.