Which One of the Following Statements Is Correct with Respect

question 119

Multiple Choice

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

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

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Definitions:

Life Insurance Reserves

Financial reserves that life insurance companies set aside to ensure they can meet future policyholder claims and obligations.

Financial Assets

Resources that are financial in nature, owned by individuals or businesses, which include stocks, bonds, cash, and bank deposits.

Corporate Equity

Represents the value of ownership interest in a corporation, divided among individual shareholders in the form of stocks.

Life Insurance Reserves

Financial reserves that life insurance companies must hold to ensure they can meet future policyholder obligations.