You Are About to Form a Partnership

question 53

Multiple Choice

You are about to form a partnership. You want to make a partnership agreement which will protect your interests in the event that your partner decides to retire. Which of the following is TRUE?

• A)Your agreement should have a buy-sell clause in it.
• B)Your agreement should contain a method for determining the value of the business.
• C)Your agreement should provide for your partner's shares to be appraised in the event of your making an offer for them.
• D)Both A and B
• E)All of the above

Calculate the present value of a single amount and an annuity.

Interpret the results of financial calculations to make investment decisions.

Understand the concept of an annuity and its relevance in investment decisions.

Apply the concept of present value index in evaluating investment proposals.

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Definitions:

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