Ann and David Want to Form a Partnership

question 13

Multiple Choice

Ann and David want to form a partnership. They should consider all of the following except

• A) possibility of disagreement.
• B) unlimited liability.
• C) ease of setting up a partnership.
• D) the combined talents of both partners.
• E) ease in transferring ownership.

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Definitions:

Specific Tariff

A specific tariff is a fixed fee imposed by a government on each unit of imported goods, based on quantity rather than value.

Lump-Sum Tax

A fixed amount of tax that an individual or business is required to pay, regardless of income or transaction value.

World Price

The price at which goods are traded internationally, determined by global supply and demand conditions.