Which of the Following Statements Is False Regarding a General

question 90

Multiple Choice

Which of the following statements is false regarding a general partnership?

• A)It is easy to create.
• B)The partners are considered agents of the partnership.
• C)Business losses can be deducted from taxes.
• D)Income of the business is personal income.
• E)In most cases partners do not have personal liability for losses.

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Definitions:

Firms

Firms are business entities engaged in commercial, industrial, or professional activities, aiming to make a profit by providing goods or services.

Labor Supply Curve

a graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to supply.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another more or less expensive one.

Income Effect

Income effect describes the change in an individual's or economy's consumption patterns due to a change in real income.