The Individual Assets Invested by a Partner in a Partnership

question 19

Multiple Choice

The individual assets invested by a partner in a partnership

• A) revert back to that partner if the partnership liquidates.
• B) determine that partner's share of net income or loss for the year.
• C) are jointly owned by all partners.
• D) determine the scope of authority of that partner.

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Definitions:

Repay

To pay back or return money that was borrowed from a person, bank, or financial institution.

Risk

The potential for loss or the chance that an investment's actual return will differ from the expected return.

Uncertainty

A situation characterized by the lack of predictability or definite knowledge about an outcome or result.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.