Which of the Following Is True of the Liability of an Incoming

question 27

Multiple Choice

Which of the following is true of the liability of an incoming partner?

• A)An incoming partner is liable for the antecedent debts of the partnership.
• B)An incoming partner has joint and several liability with existing partners for the antecedent debts of the partnership.
• C)An incoming partner is liable for the existing debts of the partnership only to the extent of his or her capital contribution.
• D)An incoming partner is not liable for the future debts of the partnership.

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Definitions:

Keynesian Theory

An economic theory stating that government intervention through fiscal policy is necessary to manage aggregate demand and address unemployment and recession.

Say's Law

An economic theory stating that supply creates its own demand, suggesting that producing goods and services generates the means and the willingness to purchase other goods.

Demand-Oriented

Demand-Oriented is an approach or policy focused on increasing consumer demand to stimulate production and economic growth.

Aggregate Supply

The overall quantity of goods and services that businesses in an economic system aim to sell within a certain period.