Fred and Carole Were Trying to Create a List of the Pros

question 124

Multiple Choice

Fred and Carole were trying to create a list of the pros and cons of sole proprietorship, partnership, and corporation to determine the best structure for carrying on business. Which of the following is true in regards to being a general partner?

• A) A partner is liable for only the amount that he or she invested in the partnership firm.
• B) Every general partner faces limited liability for the debts of the partnership.
• C) Each partner is an agent for every other partner and of the firm itself, so a partner may be liable for the contracts made by an incompetent partner.
• D) Retiring from a partnership by giving notice to his partners frees a partner from liabilities he faced while being a partner of the firm.
• E) A partner is liable to pay from his personal assets only when the partner has committed a criminal act.

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Definitions:

Carnivores

Organisms that primarily eat meat, typically animals that have adaptations for hunting and consuming other organisms.

Fully Terrestrial

An organism or system that lives, operates, or performs its entire lifecycle on land with no aquatic phase.

Reproduction

The biological process by which new individual organisms are produced from their parents, essential for the survival and continuation of a species.

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, characterized by life stages both in water (as larvae) and on land (as adults).