Which of the Following Statements Represents a Partner's Right to an Interest

question 58

Multiple Choice

Which of the following statements represents a partner's right to an interest in the partnership?

• A) A partner has no right to an interest in the partnership.
• B) The right is composed only of the partner's share of profits.
• C) The right is composed only of the partner's right to return of capital contributed by the partner.
• D) The right is composed only of the partner's right to return of capital contributed by the partner and any wages due.
• E) The right is composed of a combination of the partner's share of the profits and a return of capital contributed by the partner.

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Definitions:

Venture

An undertaking that is risky or daring but may lead to profit or success in a business context.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Business Executives

Individuals who hold senior managerial positions within a company, responsible for strategic decision-making and leading the organization.

Profit

The financial gain realized when the revenue from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.