Which of the Following Is Correct with Respect to the Law

question 157

Multiple Choice

Which of the following is correct with respect to the law of partnership?

• A) All partnerships must be registered.
• B) Partnership is generally a less costly method of carrying on business than incorporation.
• C) All partners have a right to an equal say in the management of the partnership and this cannot be changed by agreement.
• D) The partnership relationship is governed by legislation that states that profits and losses are to be shared equally, and this cannot be modified by agreement.
• E) Any major change in the partnership must be made by unanimous agreement, and this cannot be changed by partnership agreement.

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Definitions:

FTC Act

The Federal Trade Commission Act is a piece of legislation, established in 1914, aimed at preventing unfair or deceptive business practices and promoting competition.

Antitrust Laws

Legislation aimed at preventing monopolies and promoting competition by regulating business practices that might restrict trade or competition.

Monetary Award

A monetary award is a financial sum given to a party, often as compensation for a legal claim or recognition of achievements.

Profits

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.