When a Partner Is Added to a Partnership

question 59

Multiple Choice

When a partner is added to a partnership:

• A)The previous partnership ends.
• B)The underlying business operations ends.
• C)The underlying business operations must close and then reopen.
• D)The partnership must continue.
• E)The partnership equity always increases.

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Definitions:

Last Recession

Describes the most recent period of significant decline in economic activity across the economy, lasting more than a few months.

Winter 1989-90

A specific time period referring to the winter months of December 1989, January 1990, and February 1990, often notable for its weather or events occurring then.

Stagflation

A period of either recession or stagnation accompanied by inflation.

Recessions

Times of short-term economic downturn characterized by decreased commerce and industrial production, typically recognized by a drop in Gross Domestic Product (GDP) for two consecutive quarters.