Which of the Following Is True with Regard to Partnership

question 23

Multiple Choice

Which of the following is true with regard to partnership?

• A) No partnership can be formed unless the parties intended to create a partnership.
• B) Sharing gross receipts is sufficient evidence of the existence of a partnership.
• C) The terms of the Partnership Act will be implied in a partnership agreement that includes provisions on the same point.
• D) A general partner is not an agent of the firm and the other partners.
• E) A limited partnership is an arrangement in which a partner may limit liability to his capital contribution.

Calculate and evaluate the net present value (NPV) and internal rate of return (IRR) of investments.

Understand the impact of taxes, depreciation methods, and salvage values on investment decisions.

Apply financial principles to retirement planning, including saving strategies and income requirements.

Assess investment opportunities by understanding and calculating future values and cash flows.

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, without any formal legal entity separation.

C Corporation

A legal structure for corporations in the U.S. where the owners are taxed separately from the entity, providing limited liability protection.

Partnership

A business structure where two or more individuals share ownership, profits, and responsibilities for managing the enterprise.

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