Which One of the Following Situations Will Result in the Existence

question 186

Multiple Choice

Which one of the following situations will result in the existence of a partnership? Assume no corporation has been created.

• A) Joe and Mary own a house together and share the income from it.
• B) Joe pays back a debt to Harry by giving Harry a percentage of the profits from his business.
• C) Joe and Mary own a shoe store business together and share the profits.
• D) Employees are given bonuses because of increased profits.
• E) A lawyer and a real estate agent split the commission.

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Definitions:

November

The eleventh month of the year in the Gregorian calendar, following October and preceding December.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated to produced goods.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the amount of overhead allocated to production, based on standard rates.

Variable Overhead Efficiency Variance

A metric that shows the difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the achieved level of activity.