Which of the Following Is a False Statement Regarding a Partnership

question 1

Multiple Choice

Which of the following is a false statement regarding a partnership?

• A)It is easy to create.
• B)Income of the business is personal income.
• C)Business losses can be deducted from taxes.
• D)Each partner is considered an agent of the partnership.
• E)In most cases,partners do not have personal liability for losses.

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Definitions:

Long-Run Equilibrium

A state where there is no tendency for economic variables, such as prices, outputs, or employment, to change, because all agents in the economy have fully adjusted to any changes.

Efficient Scale

The level of production at which a firm can produce its goods at the lowest average cost, optimizing resource use.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations.

Short-Run Equilibrium

A state in which market supply and demand balance out at a particular price level, resulting in an unchanging economic situation.