If One Partner Dies in a Two Partner Partnership, the Estate

question 93

True/False

If one partner dies in a two partner partnership, the estate cannot be a partner, so the partnership is terminated.

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Definitions:

Net Operating Income

Income before interest and income taxes have been deducted.

Drop Product

A strategy or decision by a company to discontinue the production, sale, or support of a product line or item.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.