Which of the Following Is Generally Not True of a Business

question 48

Multiple Choice

Which of the following is generally not true of a business alliance?

• A) Tax considerations are often the primary motivation for forming the alliance
• B) The events triggering dissolution of the alliance are generally spelled out
• C) Remaining partners have a right of first refusal if one partner chooses to exit the partnership
• D) One partner is generally responsible for day-to-day operations
• E) Allocation of profits and losses follow from the allocation of shares or partnership interests

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Definitions:

Economist Expectation

The forecasts or predictions about economic factors like inflation, growth, or interest rates made by economists.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to purchase at a particular price.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from total revenues, representing the additional value created beyond all opportunity costs.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the additional output will eventually decrease.