Which of the Following Is Not a Characteristic of a General

question 177

Multiple Choice

Which of the following is not a characteristic of a general partnership?

• A) the partnership is created by a contract
• B) mutual agency
• C) partners share equally in net income or net losses unless an agreement states differently
• D) dissolution occurs only when all partners agree

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount.

Capital Balances

The amount of money that owners have invested in a company, minus any withdrawals, often shown in the equity section of the balance sheet.

Net Income

A company's profit remaining after all expenses, taxes, and losses have been deducted.

Closing the Revenue

The process of finalizing all revenue transactions within a given period, marking the end of a business's revenue cycle for that timeframe.