Which of the Following Is True of the Relationship Between

question 85

Multiple Choice

Which of the following is true of the relationship between partners?

• A) In most general partnerships, each partner has two votes in decisions pertaining to the management of the business.
• B) Each partner should have a fiduciary relationship with the partnership.
• C) Decisions pertaining to merging with another partnership should never be decided by a unanimous vote.
• D) The duty of loyalty and a duty of good faith and fair dealings by partners are established by the Uniform Partnership Act.

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Definitions:

Asset Efficiency

A measure of how effectively a company uses its assets to generate revenue.

Salvage Value

The projected resale price of an asset upon reaching the end of its useful period, accounted for in computing depreciation.

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for resale.

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.