Which of the Following Is NOT an Essential Element for the Creation

question 32

Multiple Choice

Which of the following is NOT an essential element for the creation of a partnership?

• A) The partners must be carrying on a business in common.
• B) The business must be carried on by or on behalf of all the partners.
• C) The partnership must be registered with the Australian Securities and Investments Commission (ASIC).
• D) The partners must intend to make a profit.

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Definitions:

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

MR

Marginal Revenue, the increase in revenue that results from the sale of one additional unit of output.

ATC

Average Total Cost, a calculation used in economics to find the total cost per unit of output when all fixed and variable costs are taken into account.

Economic Profits

The profit a company makes after accounting for both its explicit and implicit costs, including opportunity costs.