Which of the Following Is Not a Characteristic of a Partnership

question 9

Multiple Choice

Which of the following is not a characteristic of a partnership?

• A) The partnership itself pays no income taxes.
• B) It is easy to form a partnership.
• C) Any partner can be held personally liable for all debts of the business.
• D) A partnership requires written Articles of Partnership.
• E) Each partner has the power to obligate the partnership for liabilities.

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Definitions:

Above Average Profits

Earnings that surpass the norm or average level within a particular industry or market.

Perfectly Elastic Demand

A market situation where demand for a product can drastically change to infinity with the slightest change in its price.

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.

More Elastic Demand

A situation where the demand for a product is more sensitive to changes in price, meaning quantities demanded change significantly even with small price fluctuations.