Which of the Following Is True Regarding Decisions Requiring Unanimous

question 36

Multiple Choice

Which of the following is true regarding decisions requiring unanimous agreement among the partners, when the articles of partnership do not address the matter?

• A) A decision to change some element of the partnership agreement, a decision to admit a new partner, and a decision to alter the nature of the firm's business all require unanimous agreement among the partners.
• B) A decision to change some element of the partnership agreement requires unanimous agreement, but a decision to admit a new partner and a decision to alter the nature of the firm's business may be made by majority vote.
• C) A decision to change some element of the partnership agreement and a decision to admit a new partner require unanimous agreement among the partners, but a decision to alter the nature of the firm's business may be made by majority vote.
• D) A decision to admit a new partner and a decision to alter the nature of the firm's business require unanimous agreement among the partners, but a decision to change some element of the partnership agreement may be made by majority vote.
• E) All decisions are made by majority vote and none require unanimous agreement.

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Definitions:

Required Return

Required return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Annual Dividend

This is the total amount of dividend payments a shareholder receives from a company in one year.

Long-Run Growth Rate

The sustainable rate at which a company or an economy can grow its output over a long period without increasing inflation.

Required Rate of Return

The minimum return an investor expects to achieve for the risk associated with a particular investment.