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:

Merchandise Business

A type of business that purchases finished goods for resale, making profit through the buying and selling process.

Service Business

A type of business that provides intangible products or services to customers.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Revenue from Sales

Represents the income that a company generates from its business activities, typically from the sale of goods or services to customers.