According to the Uniform Partnership Act, the Three Key Elements

question 106

Multiple Choice

According to the Uniform Partnership Act, the three key elements of any general partnership are:

• A) A board of directors, a written partnership agreement, and a well-defined product or service.
• B) Two owners, an adequate financial base, and a written statement describing the manner in which profits and losses will be divided.
• C) Common ownership, shared profits and losses, and right to participate in management.
• D) Common stock, a board of directors, and a statement of limited liability.

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Definitions:

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Operating Activities

Transactions and other events that are not investing or financing activities, relating to the primary operations of a business.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of a company.

Operating Activities

The day-to-day actions taken by a business, such as selling products, managing costs, and paying bills, that are essential to running the business and generating income.