Which of the Following Statements Regarding Partnerships Is True

question 4

Multiple Choice

Which of the following statements regarding partnerships is true?

• A)Partners must contribute equal portions of capital to the partnership.
• B)It is possible that a minority partner will have significant influence over the partnership.
• C)A holding corporation cannot act as a partner.
• D)A general partnership is a protected legal entity, separate from the partners' affairs.

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Definitions:

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses.

Incomes

Earnings received by individuals or entities in exchange for labor or investment, including wages, salaries, and profits.

Government Policies

Strategies and actions defined by government bodies designed to influence or guide aspects of the economy or social issues.

Quantity And Prices

The relationship in economics between the quantity of goods available (supply) and the price those goods fetch in the market (demand).