Which One of the Following Statements Is Correct with Respect

question 168

Multiple Choice

Which one of the following statements is correct with respect to the creation of a partnership agreement?

• A)A partnership can be created by an intention to share the revenues between the partners.
• B)For a partnership to exist,the relationship giving rise to it must be of an ongoing business nature,not a one-time promotion.
• C)For a person to be a limited partner,there must be at least two general partners.
• D)A partnership can be created only by contract.
• E)Where two people agree to enter into a partnership,there is no partnership created unless all elements of a contract are present.

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Definitions:

Projected Benefit Obligation

The present value of all benefits attributed by the pension benefit formula to employee service rendered up to that date.

Defined Benefit Plan

A Defined Benefit Plan is a type of pension plan where the benefits that the employee will receive upon retirement are defined based on a formula involving salary history and years of service.

Internal Revenue Code

The codified collection of U.S. tax laws encompassing various rules for income, payroll, gift, estate, and excise taxes.

Taxable

Subject to taxation; refers to income, assets, or financial transactions that are liable to be taxed by governmental jurisdictions.