All of the Following Conditions Must Exist for Partnership by Estoppel

question 14

Multiple Choice

All of the following conditions must exist for partnership by estoppel to exist EXCEPT

• A)one partner agrees not to share in the profits of the enterprise.
• B)participants tell other people they are partners even though they are not.
• C)a third party believes and relies upon the assertion that participants are partners.
• D)a third party suffers harm because he or she believed a partnership existed.

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Definitions:

Product Costs

The costs incurred by a company to manufacture or acquire a product which include materials, labor, and overhead.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service.

Direct Labor

The wages and benefits for employees directly involved in the production of goods or services.

Plantwide Factory Overhead Rate

A single overhead absorption rate used across an entire manufacturing plant, calculated by dividing the total factory overhead by a predetermined base, such as total direct labor hours or machine hours.