Which of the Following Is TRUE of a Written Partnership

question 112

Multiple Choice

Which of the following is TRUE of a written partnership agreement?

• A) It is an agreement in which the partners hold a direct agreement with the registration body, and the registration body acts as an interlocutor between the partners.
• B) It is an informal agreement between the partners and is not legally binding.
• C) It is a legally-binding agreement between the owners which explains the procedures for liquidating the partnership.
• D) It is a legally-binding agreement between the proprietors and the stock exchange where it is listed regarding the profit sharing between the owners.

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Definitions:

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, as it involves the transfer of ownership rights of the asset to the lessee.

Transactions Costs

Expenses incurred when buying or selling goods and services, which can include fees, taxes, and other charges.

Buying And Selling

The basic actions of purchasing an asset and then selling it, fundamental processes in any market.

Operating Lease

A lease agreement allowing the use of an asset but does not convey rights of ownership of the asset.