Which of the Following Statements Is Correct

question 59

Multiple Choice

Which of the following statements is correct?

• A)In a partnership, liability for other partners' misdeeds includes but is limited to the amount a particular partner has invested in the business.
• B)Partnerships must be formed according to specific rules, which include the filing of a formal written agreement with state authorities where the partnership does business.
• C)A fast growth company would be more likely to set up a partnership for its business organization than would a slow-growth company.
• D)Under partnership law, if any partner is unable to meet his or her pro rata claim in the event the partnership goes bankrupt, the remaining partners must make good on the unsatisfied claims.
• E)A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulty of its formation.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Supervisory Support

The assistance and guidance provided by supervisors to their subordinates.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Laborious Method

A method or process that requires a significant amount of effort and hard work.