Articles of Partnership

question 52

Multiple Choice

Articles of partnership:

• A) are required to form a partnership by federal law.
• B) are a formal written agreement that states the partners' relationship.
• C) may be an oral agreement.
• D) Both B and C are correct.

---

Definitions:

Bondholders

Investors who own bonds issued by a corporation or government, essentially lending money to the issuer in exchange for periodic interest payments and the return of principal at maturity.

Bankruptcy Probabilities

Bankruptcy Probabilities represent the likelihood of a company or entity being unable to meet its financial obligations and thus having to declare bankruptcy.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

Tax Savings

The reduction in income tax obligation achieved through various deductions, credits, and exemptions.