Which One of the Following Statements About General Partnerships Is

question 42

Multiple Choice

Which one of the following statements about general partnerships is false?

• A)A general partner can limit his liability for the firm's obligations by using the term "limited" after his name on stationery.
• B)Each partner has unlimited personal liability for the debts of the partnership.
• C)The Partnership Act can imply contractual terms into a partnership where the partners did not expressly agree on some detail of the relationship.
• D)Partnership is the relationship that exists between persons carrying on business together with a view to making a profit.
• E)A partnership can exist even without a written partnership agreement.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of materials.

Variable Manufacturing Overhead

Costs that vary in total in direct proportion to changes in the volume of production, such as indirect materials and utility costs directly tied to production.

Raw Materials

The basic materials from which a product is made, prior to any processing or manufacturing.

Price Variance

The difference between the actual price paid for something and its standard or expected price.