The Partnership Act Provides That If the Partners Do Not

question 28

Multiple Choice

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is not such an implied term?

• A) Each partner shall be responsible for the losses of the firm only to the limit of that partner's initial cash contribution.
• B) Every partner may take part in the management of the partnership business.
• C) No partner is entitled to a wage for acting in the partnership business.
• D) No person may be introduced as a new partner without the consent of all of the existing partners.
• E) The partners will share the profits equally.

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Definitions:

Cost Center

A business unit or department that incurs expenses but does not directly generate revenues, typically evaluated on its cost efficiency.

Monitoring

The process of systematically checking or tracking activities or performance for compliance with expected standards.

Firm's Attention

The focus or priority that a company dedicates to a particular project, issue, or aspect of its operations.

Profit Centers

Divisions or branches of a business that are treated as separate entities for profit calculation and management purposes.