Which of the Following Statements Is True Under the Uniform

question 3

Multiple Choice

Which of the following statements is true under the Uniform Partnership Act,regarding profit and partnerships?

• A)A partnership must have a profit-making motive only if the partnership has five or more members.
• B)The partners must operate the business for a profit,which is construed to mean that the partners must intend to make some kind of profit from the business.
• C)The partners must operate the business for a profit,and the partnership must be dissolved if no profit is made for three consecutive years.
• D)There is no requirement that a partnership be formed with a profit-making motive,and all states recognize the status of non-profit partnerships.
• E)There is a requirement that a partnership have a profit-making motive only if the partnership has been in existence for over one year.

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Definitions:

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

COGS/Sales

COGS/Sales is a financial ratio that measures the cost of goods sold against the total sales revenue, often used to assess the efficiency of production.

Taxes/Sales

A ratio that shows the proportion of taxes paid relative to total sales revenue, often used in financial analysis.