Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• A) In a typical partnership,liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
• B) In a limited partnership,the limited partners have voting control,while the general partner has operating control over the business,and the limited partners are individually responsible,on a pro rata basis,for the firm's debts in the event of bankruptcy.
• C) A slow-growth company,with little need for new capital,would be more likely to organize as a corporation than would a faster growing company.
• D) Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability,the need to reorganize when a partner dies,and the illiquidity (difficulty buying and selling)of partnership interests.
• E) A major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

Analyze the role and rights of third-party beneficiaries in contract assignments.

Identify the limitations and prohibitions on the assignment and delegation of contracts based on statutes or contract terms.

Understand the concept of privity of contract and its exceptions.

Comprehend the distinction between intended and incidental beneficiaries and their rights.

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Definitions:

Duodenocolic Reflexes

Reflexes that relate the function of the duodenum to the motility of the colon, aiding in digestion.

Peristalsis

A succession of wave-like contractions in muscles that push food through the digestive system.

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, that aids in the digestion and absorption of fats in the small intestine.