When Setting Up a Partnership Each Partner Can Contribute

question 6

Multiple Choice

When setting up a partnership each partner can contribute:

• A) talent.
• B) knowledge.
• C) capital.
• D) all of the above.

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Definitions:

Cost Method

An accounting method in which investments are recorded at their original purchase cost, without recognizing changes in market value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is typically not indicative of its market value.

Stated Value

A nominal value assigned by a company to its issued shares, which may be above or below the market value.