Which of the Following Statements Best Describes a Partnership

question 25

Multiple Choice

Which of the following statements best describes a partnership?

• A) Partnership involves two or more persons carrying on business with a view towards profits.
• B) Partnerships involve limited liability.
• C) Partnerships are created when two or more persons specifically agree to be in partnership.
• D) Partnerships are only created when they have been properly registered with the government.
• E) Partnerships are like any other form of contract; they can only be created when there is consensus between the parties in the form of offer and acceptance to that effect.

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Definitions:

Volume Variance

A measure of the difference between the budgeted and actual volume of production, impacting costs.

Overhead Variances

The difference between actual overhead costs and the budgeted or standard overhead costs.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the costs are actually incurred.

Labor-Hour

A unit of measure representing one hour of work by an employee, often used in costing and budgeting processes.