As in a Proprietorship, Changes in Capital for a Partnership

question 60

Multiple Choice

As in a proprietorship, changes in capital for a partnership may result from three causes. Which one of the following is not a cause for change?

• A) additional investments by owner
• B) drawings
• C) allocating profit to the owner or owners
• D) collection of account receivable

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Definitions:

Market Structures

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Oligopolistic Industry

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent pricing and marketing strategies.

Collude Effectively

To engage in a secret agreement or cooperation among parties, often competitors, for a deceitful or illegal purpose, such as fixing prices or rigging markets.

Pure Monopoly

describes a market structure where a single company has exclusive control over the supply of a product or service, with no close substitutes.