Which of the Following Is Not a Characteristic of the Proprietary

question 8

Multiple Choice

Which of the following is not a characteristic of the proprietary theory that influences accounting for partnerships?

• A)Partners' salaries are viewed as a distribution of income rather than a component of net income.
• B)A partnership is not viewed as a separate, distinct, taxable entity.
• C)A partnership is characterized by limited liability.
• D)Changes in the ownership structure of a partnership result in the dissolution of the partnership.

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Definitions:

Group Development

The process through which a group evolves over time, typically moving through stages of forming, storming, norming, performing, and adjourning.

Cohesion Stage

A developmental phase within group formation where members start to unite, establishing strong relationships and a sense of solidarity.

Storming Stage

The second phase of group development characterized by conflict and competition as group members establish their roles and the group's norms.

Increased Cohesion

Refers to the strengthening of bonds and unity within a group, often improving group functioning.