The Partnership Form of Business Organization

question 72

Multiple Choice

The partnership form of business organization

• A)is a separate legal entity.
• B)is a common form of organization for service-type businesses.
• C)enjoys an unlimited life.
• D)has limited liability.

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Definitions:

Impairment

The permanent reduction in the value of a company's asset, typically when the asset's market value drops below its recorded book value.

Dividends

Earnings distributed by a company to its shareholders, usually in the form of cash or additional shares.

Consolidated Retained Earnings

The total accumulated profits of a parent company and its subsidiaries after dividends are paid, as shown in consolidated financial statements.

Equity Method

An accounting practice where an investor records its proportional share of investee profits or losses, reflecting the changing value of its investment over time.