Which of the Following Is an Advantage of Partnerships

question 8

Multiple Choice

Which of the following is an advantage of partnerships?

• A) A partnership is practical because only a limited number of persons can be partners.
• B) A partnership is easily formed because it is based on a contract among persons.
• C) Each partner's liability is unlimited.
• D) Partners are taxed on their share of the partnership's profits, whether the profits are distributed or not.
• E) A partnership is dissolved anytime a partner ceases to be a partner, regardless of whether the reason is withdrawal or death.

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Definitions:

Shrinkwrap Contracting

A term used to describe agreements where the terms and conditions are enclosed within a product's packaging and are considered accepted upon opening.

License Agreement

A legal contract between a licensor and a licensee allowing the latter to use, produce, or sell an invention, software, or trademark.

Sealed Package

A form of packaging that is securely closed or sealed, making the contents tamper-evident and ensuring the integrity of the product until it reaches the consumer.

United Nations Convention

A formal agreement or treaty developed and adopted by member states of the United Nations on various global issues.