Which of the Following Statements About Partner's Rights Is NOT

question 36

Multiple Choice

Which of the following statements about partner's rights is NOT true?

• A)A partner is entitled to interest on any money loaned to the business.
• B)Each partner is entitled to claim reasonable remuneration for working for the partnership.
• C)Any partner may take part in the management of the business.
• D)No partner is entitled to interest on their investment in the partnership until net profit has been determined.

---

Definitions:

Economic Efficiency

A condition in which all available resources are utilized in a way that produces the highest combination of quantity and quality of goods and services.

Market Economy

An economic system in which decisions on production and consumption are based on voluntary exchange in markets.

Incentives

Factors, monetary or otherwise, that motivate individuals or businesses to act in a certain way, typically to achieve certain goals or outcomes.

Society's Welfare

The overall well-being and quality of life of a community or society, often considered in terms of health, happiness, and prosperity.