Identify Which of the Following Statements Is True

question 19

Multiple Choice

Identify which of the following statements is true.

• A)When a partnership is divided into two or more new partnerships, all of the resulting partnerships must be considered new partnerships.
• B)A partnership is "publicly traded" only if its interests are traded on an established securities exchange.
• C)A limited liability company is a form of business entity that combines the legal benefits of the corporate form with the tax benefits of the partnership form.
• D)All of the above are false.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices.

Market

Any structured exchange where buyers and sellers interact to trade goods, services, or information.

Price

The capital amount projected, necessary, or handed over in trade for something.