The Partnership Act Provides That If the Partners Do Not

question 28

Multiple Choice

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is not such an implied term?

• A) Each partner shall be responsible for the losses of the firm only to the limit of that partner's initial cash contribution.
• B) Every partner may take part in the management of the partnership business.
• C) No partner is entitled to a wage for acting in the partnership business.
• D) No person may be introduced as a new partner without the consent of all of the existing partners.
• E) The partners will share the profits equally.

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Definitions:

Investments

The act of allocating resources with the expectation of generating an income or profit, often through acquiring assets like stocks, bonds, or real estate.

Business

Any organization or entrepreneurial entity engaged in commercial, professional, or industrial activities.

Assessed Values

The valuation placed on a property by a public tax assessor for purposes of taxation.

Taxes

Mandatory financial charges or levies imposed by a government on its citizens and businesses to fund public expenditures.