Which of the Following Is True of the Liability of an Incoming

question 6

Multiple Choice

Which of the following is true of the liability of an incoming partner?

• A) An incoming partner is liable for the previous debts of the partnership.
• B) An incoming partner is equally liable for all existing debts of the partnership.
• C) An incoming partner is liable for the debts of the partnership only to the extent of his or her capital contribution.
• D) An incoming partner is not liable for the future debts of the partnership.

---

Definitions:

Skimming Strategy

A pricing approach where a high price is set for a new product to maximize profits from customers willing to pay high prices before lowering the price over time.

Penetration Pricing

A pricing strategy where a product is introduced to the market at a very low price to stimulate demand and gain market share quickly.

Market Prices

The current prices at which goods or services are bought and sold in a marketplace.

Market Position

The standing or rank of a company, product, or brand in a particular market, often relative to its competitors.