Which One of the Following Statements Is Correct with Respect

question 119

Multiple Choice

Which one of the following statements is correct with respect to the creation of a partnership agreement?

• A) Where two people agree to enter into a partnership, there is no partnership created unless all of the elements of a contract are present.
• B) A partnership can be created only by contract.
• C) For a partnership to exist, the relationship giving rise to it must be of an ongoing business nature, not a one-time promotion.
• D) A partnership can be created by an intention to share the revenues between the partners.
• E) For a person to be a limited partner, there must be at least two general partners.

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Definitions:

Worst-case Scenario

A situation where the worst possible outcome occurs, often used in planning and analysis to prepare for and mitigate risks.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used for strategic planning to understand potential risks and opportunities.

Base-case Analysis

An evaluation technique in which the projected performance of a project is calculated under a set of assumptions considered most likely or average.

Sensitivity Analysis

A method employed to ascertain the impact of varying independent variable values on a specific dependent variable, based on certain assumptions.