Which of the Following Is Correct with Respect to the Law

question 157

Multiple Choice

Which of the following is correct with respect to the law of partnership?

• A) All partnerships must be registered.
• B) Partnership is generally a less costly method of carrying on business than incorporation.
• C) All partners have a right to an equal say in the management of the partnership and this cannot be changed by agreement.
• D) The partnership relationship is governed by legislation that states that profits and losses are to be shared equally, and this cannot be modified by agreement.
• E) Any major change in the partnership must be made by unanimous agreement, and this cannot be changed by partnership agreement.

---

Definitions:

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.

Straight-Line Depreciation

A process of dividing the expense of a substantial asset into identical annual portions over its useful duration.

Net Income

The net income of a firm after deducting all expenses and taxes from its gross revenue.

Cash Payback Period

A rephrased term for Payback Period, this is the duration required for an investment to generate cash flows that cover its initial expense.