Which of the Following Concepts (Or Principles)addresses the Ability of Partners

question 155

Multiple Choice

Which of the following concepts (or principles) addresses the ability of partners to commit other partners and the business to a contract?

• A) Going-concern concept
• B) Cost principle
• C) Mutual agency
• D) Objectivity principle

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Definitions:

Years with Partnership

The duration of time an individual has been involved or engaged in a business partnership.

Profit Allocation

The process of dividing the profits of a company among its stakeholders, such as shareholders, employees, or departments.

Capital Balances

The amount of money that each partner or shareholder has contributed to a company, plus their share of the net income, minus any withdrawals.