Which of the Following Is False Concerning Communal Relationships

question 100

Multiple Choice

Which of the following is false concerning communal relationships?

• A) Although repayment is not immediately required, repayment is expected within a reasonable time frame.
• B) Communal relationships involve giving in response to the needs of the other person.
• C) Partners do not focus on repayment.
• D) Partners place little emphasis on short-term equity.
• E) A chronic imbalance in the relationship over time predicts a likely end to the relationship.

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Definitions:

LLC

Limited Liability Company; a business structure allowing owners to benefit from the advantages of both the corporation and partnership forms of business.

General Partner's Liability

describes the legal responsibility of general partners in a partnership to bear unlimited personal liability for the debts and obligations of the partnership.

Limited Partnership

A business arrangement with at least one general partner managing the business and responsible for its debts, and one or more limited partners whose liability is restricted to their investment.

Transferable Interest

An interest in an entity, such as a partnership, that can be transferred or sold from one party to another.