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.

Comprehend the principles relating to the enforceability of covenants not to compete within business sale agreements.

Discriminate between valid and invalid exculpatory clauses.

Comprehend the legal consequences of unconscionable contracts and clauses.

Identify exceptions to the rule against the enforcement of illegal contracts.

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Definitions:

Market Structures

The organizational and other characteristics of a market, including the level of competition, product differentiation, and the ease of entry and exit, which determine the nature of pricing and output decisions.

Purely Competitive Firm

A company operating in a market with many sellers offering identical products, where no single seller can influence the market price.

Downward-sloping

A description of a line or curve on a graph that represents a decrease in one variable in response to an increase in another variable, commonly used to describe demand curves in economics.

Demand Curve

A visual chart demonstrating the link between an item's price and the amount consumers are willing to buy at those prices.