Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) In a partnership,liability for other partners' misdeeds includes but is limited to the amount a particular partner has invested in the business.
• B) Partnerships must be formed according to specific rules which include the filing of a formal written agreement with state authorities where the partnership does business.
• C) A fast growth company would be more likely to set up a partnership for its business organization than would a slow-growth company.
• D) Partnerships have difficulties attracting capital in part because of the other disadvantages of the partnership form of business,including impermanence of the organization.
• E) A major disadvantage of a partnership as a form of business organization is the high cost and practical difficulties of its formation.

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Definitions:

Phobia

An extreme or irrational fear or aversion to a specific thing or situation, often leading to avoidance behavior.

Morbid Fear

An irrational and exaggerated fear of an object or situation that poses little to no actual danger.

Specific Object

An item or thing that is uniquely identified or distinguished from others, often referred to in a precise or particular context.

Munchausen Syndrome

A psychiatric disorder where an individual repeatedly acts as if they have a physical or mental illness when they are not really sick.