Which of the Following Is True About Partnership Agreements

question 70

Multiple Choice

Which of the following is true about partnership agreements?

• A)The removal or delegation of a partner's management power eliminates that partner's apparent authority.
• B)A partnership agreement may create classes of partners,some of whom may have greater voting rights.
• C)In large partnerships,decisions such as hiring employees and making contracts require the unanimous agreement of all partners.
• D)Unequal voting rights are often found in small partnerships.

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Definitions:

Margin Reduction

The decrease in the difference between the cost to produce a good or service and its selling price, often aiming to increase market competitiveness.

Backup Source

An alternative supplier or system used to ensure continuity in case the primary source fails or is unavailable.

Production Capacity

The maximum output that a manufacturing facility can produce under normal conditions, determined by available resources and constraints.

Overbooking Decision

A strategic choice made by companies, especially in hospitality and transportation, to sell more units than are available, based on anticipated cancellations.