A Partnership Can Be Automatically Dissolved (Terminated)if

question 16

Multiple Choice

A partnership can be automatically dissolved (terminated) if:

• A)loans to individual partners are repaid.
• B)a partner demands the right to inspect the books of the partnership.
• C)a partner becomes bankrupt
• D)a partner becomes involved in divorce proceedings that could greatly reduce their assets.
• E)a very junior partner demands the right to be involved in decisions that have always been made by senior partners.

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Definitions:

Sales

The revenue generated from goods or services provided by a company to its customers.

Turnover

The total revenues or sales achieved by a company in a specified period, or the rate at which inventory is sold and replaced.

Average Operating Assets

A metric calculated as the average value of the assets involved in generating operating income over a specific period.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of interest and taxes.