Which of the Following Is TRUE of the Assets of a Partnership

question 115

Multiple Choice

Which of the following is TRUE of the assets of a partnership?

• A) The partner who is more actively involved in the daily business affairs is considered to be the sole owner of the partnership's assets.
• B) Any new assets purchased by the partnership are jointly owned by each partner.
• C) When a partner contributes a particular asset to the firm, he is considered to be the sole owner of the asset.
• D) In the case of the liquidation of a partnership, the partners must be paid based on the profit sharing ratio of the partnership.

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Definitions:

Variable Rate

A variable rate refers to an interest rate that changes periodically over the life of a loan or financial instrument based on an underlying benchmark interest rate or index.

Mortgage Notes

Legal documents that bind a borrower to repay a lender for a property loan, detailing the terms of the loan agreement.

Fluctuating

Experiencing frequent, irregular changes in level, quantity, or value.

Negotiable Instruments

Financial documents that promise payment to the holder under specific conditions, including checks, promissory notes, and bills of exchange.