Which of the Following Is NOT a Characteristic of a Traditional

question 11

Multiple Choice

Which of the following is NOT a characteristic of a traditional partnership?

• A) A partnership is owned by shareholders or stockholders.
• B) If a partnership cannot pay its debts, lenders can take the owners' personal assets to satisfy the obligations.
• C) A partnership joins two or more individuals as co-owners.
• D) Each partner has the authority to commit the entire partnership to a binding contract.

---

Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Absorption Costing

A costing approach that encompasses all expenses related to production, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, as part of a product's cost.

Selling and Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to production.

Net Income

The total profit of a company after subtracting all expenses from revenue, including taxes and costs.