Fred and Carole Were Trying to Create a List of the Pros

question 131

Multiple Choice

Fred and Carole were trying to create a list of the pros and cons of sole proprietorship,partnership,and corporation to determine the best structure for carrying on business.Which of the following is true regard to being a general partner?

• A) A partner is liable for only the amount than he or she invested in the partnership firm.
• B) Every general partner faces limited liability for the debts of the partnership.
• C) Each partner is an agent for every other partner and of the firm itself, so a partner may be liable for the contracts made by an incompetent partner.
• D) Retiring from a partnership by giving notice to his partners frees a partner from liabilities he faced while being a partner of the firm.
• E) A partner is liable to pay from his personal assets only when the partner has committed a criminal act.

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Definitions:

Cash Collections

The process of gathering all payments or receivables a company has earned from its sales or services.

Budgeted Sales

A financial estimation of the future sales revenue of a company over a specific period, forming part of the broader company budget.

Budgeted Sales Data

Projections or estimates of sales for a future period, used for planning and forecasting purposes.

Cash Collections

The process of gathering all cash receipts and payments, including from sales, loans, and other transactions, over a specific period.