Which of the Following Statements Is True of Managerial Control

question 32

Multiple Choice

Which of the following statements is true of managerial control in a general partnership?

• A) It is mandatory for each partner to have equal voice in a firm's affairs.
• B) Partners may agree to divide control in such a way as to make controlling partners and minority partners.
• C) The differences in the degree of control do not affect a business's success.
• D) The possibility of deadlock is higher when there is a greater number of partners and an odd number of them.
• E) Language governing issues of managerial control need to be made orally clear to all partners.

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Definitions:

Remainderman

A person who is entitled to real property subject to a prior interest (e.g., a life estate) and who acquires the fee when the prior estate terminates.

Fee Simple

The most extensive interest in real property available in law, allowing the owner absolute ownership, including the rights to sell, lease, or bequeath the property.

Life Estate

A legal interest in real property that lasts for the lifetime of a specific individual, after which the property reverts to another party.

Fixture

An item of property that is attached to a structure or land in such a way that it is considered a permanent part of the site.