Which of the Following Is NOT a Characteristic of a Traditional

question 73

Multiple Choice

Which of the following is NOT a characteristic of a traditional partnership?

• A)Each partner has the authority to commit the entire partnership to a binding contract.
• B)A partnership is owned by shareholders or stockholders.
• C)A partnership joins two or more individuals as co- owners.
• D)If a partnership cannot pay its debts, lenders can take the owners' personal assets to satisfy the obligations.

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Definitions:

Open Market

An economic system in which prices for goods and services are determined by unrestricted competition between privately owned businesses.

Capital Gains Rate

The tax rate applied to the profit from selling an asset that has increased in value.

Profit-sharing Bonuses

A type of incentive given to employees where they receive a share of the company’s profits, typically as part of their compensation package.

Seniority

The concept of giving preference to employees with longer tenure in aspects of employment such as promotions, pay increases, and layoffs.