Which of the Following Statements Regarding Partnerships Is True

question 2

Multiple Choice

Which of the following statements regarding partnerships is true?

• A) A general partnership is a protected legal entity, separate from the partners' affairs.
• B) A holding corporation cannot act as a partner.
• C) Partners must contribute equal portions of capital to the partnership.
• D) It is possible that a minority partner will have significant influence over the partnership.

---

Definitions:

Total Revenue

The total amount of money received by a company from selling goods or services before any expenses are subtracted.

Explicit Costs

Direct, out-of-pocket payments for resources or services used in the production of goods or services.

Implicit Costs

Denotes the opportunity costs of utilizing resources owned by the firm for its operations, instead of allocating them elsewhere to earn a return.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.