Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?
1) Personal creditors have first claim on partnership assets.
2) Partnership creditors have first claim on partnership assets.
3) Partnership creditors have first claim on personal assets.

• A)1
• B)2
• C)3
• D)Both 2 and 3

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Definitions:

Factor Market

A factor market is a marketplace for the services of factors of production, such as labor, capital, and land, where these are bought and sold.

Circular Flow

An economic model depicting the continuous movement of money, goods and services, and factors of production between producers and consumers in the economy.

Household

An economic unit that consists of all individuals who occupy a housing unit, regardless of their relationship.

Business

Organized efforts by individuals or entities to produce, sell goods or provide services for profit.