Which of the Following Will Establish the Existence of a Partnership

question 167

Multiple Choice

Which of the following will establish the existence of a partnership?

• A) A debt is repaid by the creditor taking a share of the profits.
• B) An employee receives a profit-sharing bonus.
• C) The good-will portion of the sale of a business is repaid by a share of the profits.
• D) The parties intend to share the expenses of the business.
• E) The beneficiary of a deceased partner takes that partner's share of the income from the partnership.

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Definitions:

Porter's Model

A strategic tool developed by Michael E. Porter used to analyze the competitive environment of an industry, including five forces: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.

Generic Competitive Strategies

Generic Competitive Strategies are basic approaches developed by Michael Porter for businesses to gain competitive advantage, including cost leadership, differentiation, and focus strategies.

Cost Synergies

The financial savings achieved by combining two or more entities, processes, or systems, leading to lower costs than if operated separately.

Human Imagination

The ability of the mind to be creative, innovate, and conceive of scenarios beyond current reality.