In Which of the Following Situations Is a Partnership NOT

question 36

Multiple Choice

In which of the following situations is a partnership NOT dissolved?

• A)One partner writes a letter to the others stating that the partnership is terminated.
• B)A partnership is set up to operate a booth selling buttons at the Olympics and the Olympics are over.
• C)One of the partners dies.
• D)A partnership is set up for 14 years and 14 years have passed.
• E)The same partners decide to continue the partnership but in a different type of business.

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Definitions:

Inventory

The goods or materials a business holds for the ultimate purpose of resale or processing in the production process.

Invest

Putting money into ventures with the expectation of receiving a financial return or profit.

Investment Project

A project involving the allocation of capital or resources towards an initiative expected to generate future income or profit over a certain period of time.

Interest

The charge for borrowing money, typically expressed as an annual percentage of the loan amount, or the return earned on investment capital.