A Partnership by Estoppel

question 31

Multiple Choice

A partnership by estoppel:

• A)is the same as a partnership by implication.
• B)results when third parties are led to believe a partnership exists.
• C)is the same as a joint venture.
• D)none of the above

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Definitions:

Debt-equity Ratio

The ratio reflecting on the strategic use of shareholders' equity and debt for the purpose of financing assets.

Growth Rate

The rate at which a company's earnings or revenue increases over a specified period, typically expressed as a percentage.

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, often used for reinvestment.

Dividend Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of net income.