Which of the Following Statements Best Describes Partnerships

question 34

Multiple Choice

Which of the following statements best describes partnerships?

• A)Corporations are at a disadvantage relative to partnerships because they have to file more reports to regulatory agencies, even if they are not publicly owned.
• B)In a regular partnership, liability for the firm's debts is limited to the amount a particular partner has invested in the business.
• C)A fast-growth company would be more likely to set up as a partnership for its business organization than would a slow-growth company.
• D)There must be at least one person acting as a general partner in a limited partnership.

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Definitions:

Net Present Value

The calculation of the present value of an investment's expected cash inflows and outflows, used to assess the profitability of an investment or project.

Project Life

The duration from the initiation to the completion of a project, encompassing all stages of its development and execution.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Payback Period

This is the duration required to recoup the funds expended in an investment.