A Partnership Business Is A

question 21

Multiple Choice

A partnership business is a:

• A)firm listed in a stock exchange, in which no owner owns a majority of equity to control the firm.
• B)business with two or more owners that is not organized as a corporation.
• C)corporation in which the owners have limited liability for the corporation's liabilities.
• D)private firm in which all owners have equal ownership and limited liabilities in the event of a bankruptcy.

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Definitions:

Earnings per Share

A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating company profitability.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earnings from investment in stocks as a percentage.

Acid-test Ratio

A liquidity measurement that evaluates whether a company can pay its short-term obligations using its most liquid assets, typically excluding inventory.

Accrual-Based

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.