Which Statement Concerning Drawings by Partners in a Partnership Is

question 42

Multiple Choice

Which statement concerning drawings by partners in a partnership is true?

• A) Interest is charged on drawings if the partnership agreement is silent on the matter.
• B) Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.
• C) Drawings are generally regarded as withdrawals of future profits.
• D) Drawings are taken into account when calculating the final distribution of profit between the partners.

Grasp the jurisdiction and role of U.S. District Courts in bankruptcy proceedings.

Recognize the exemptions and the non-dischargeable debts in bankruptcy.

Understand the mechanisms of protecting creditor's rights such as garnishment and attachment in pre-judgment and post-judgment phases.

Identify the types of debts dischargeable in bankruptcy.

---

Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors as compensation for the risk they undertake by investing in the company, often estimated using models like the Capital Asset Pricing Model (CAPM).

Required Returns

The minimum expected return by investors for investing in a particular asset, taking into account its risk level.

Capital Components

The various sources of funding that a company uses to finance its overall operations and growth, including debt and equity.

Pretax Cost

The expense or cost of an investment or operation before the deduction of taxes.