Which of the Following Is True of a Partnership

question 18

Multiple Choice

Which of the following is true of a partnership?

• A)It is the most expensive form of direct investment.
• B)It is a formal, long-term agreement.
• C)It is the most basic level of global trade.
• D)It is otherwise known as domestic franchising.

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Definitions:

Quick Assets

Highly liquid assets that can be quickly converted into cash without losing value, often including cash, marketable securities, and accounts receivable.

Current Assets

Items of value that are likely to be turned into cash, sold off, or used up within the span of one year or the length of the operating cycle, whichever period extends further.

Current Liabilities

Obligations that a company needs to pay off within one year or within its operating cycle, whichever is longer.

Credit Terms

Conditions under which a seller extends credit to a buyer, detailing the repayment time frame and any interest or penalties for late payment.