Which of the Following Is the Proper Definition of a Partnership

question 56

Multiple Choice

Which of the following is the proper definition of a partnership as set out in the Partnership Act?

• A) Partnership exists where two or more persons carry on business together with a view towards profits.
• B) A partnership exists where any business is carried on with a view towards profits.
• C) A partnership is created where a corporation with shareholders is registered with the federal government.
• D) A partnership is only created where the partners actually share the profits from a business.
• E) A partnership exists only where two or more people enter into a written agreement to be partners.

---

Definitions:

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, to the bondholder.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate; it is a static value and not indicative of market value.

Treasury Bill

Short-term U.S. government debt obligations backed by the Treasury Department with a maturity of less than one year.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in legal documents.