Which of the Following Statements About Partnerships Is Incorrect

question 40

Multiple Choice

Which of the following statements about partnerships is incorrect?

• A) Partnership assets are co-owned by partners.
• B) If a partnership is terminated, the assets do not legally revert to the original contributor.
• C) If the partnership agreement does not specify the manner in which profit is to be shared, it is distributed according to capital contributions.
• D) Each partner has a claim on assets equal to the balance in the partner's capital account.

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Definitions:

Rationalisations

The process of reorganizing a company to increase its efficiency, often involving streamlining operations and reducing staff.

Unethical Behaviour

Actions or practices within an organisation or individual that are immoral, dishonest, or violate professional standards.

Longer Term Implications

Consequences or effects of actions or decisions that become apparent or have an impact over an extended period.

Organisational Loyalty

The commitment of employees to the goals, values, and success of their organization, often resulting in higher productivity and job satisfaction.