Which of the Following Is Correct with Respect to the Law

question 44

Multiple Choice

Which of the following is correct with respect to the law of partnership?

• A) A partnership cannot be created inadvertently.
• B) Joint and several liability means that each partner can be sued several times.
• C) Each partner is vicariously liable for the wrongful acts of their partners committed in the course of the partnership business.
• D) Partners are only liable for the torts of their partners if they in fact knew that the wrongful conduct was taking place.
• E) Partners have unlimited liability, meaning that they can lose up to the amount they have invested in the business.

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Definitions:

Marginal Tax Rate

The amount by which taxes increase from an additional dollar of income.

Interest Income

Earnings received from investments in financial assets like savings accounts, certificates of deposit, or bonds, typically expressed as a percentage of the principal.

Aggregate Demand

The aggregate need for every product and service in an economy, measured at a specific overall price level during a certain time frame.

Long-run Output

The maximum amount of goods and services an economy can produce when it fully utilizes its resources, typically considered over a period where all inputs can be adjusted.