When the Articles of Partnership Do Not Address the Matter

question 103

Multiple Choice

When the articles of partnership do not address the matter, which of the following require unanimous agreement among the partners?

• A) A decision to change some element of the partnership agreement.
• B) A decision to admit a new partner.
• C) A decision to alter the nature of the firm's business.
• D) A decision to change some element of the partnership agreement, a decision to admit a new partner, and a decision to alter the nature of the firm's business.
• E) A decision to change some element of the partnership agreement and a decision to admit a new partner, but not a decision to alter the nature of the firm's business.

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Definitions:

Luxury Tax

A tax imposed on expensive goods and services, often considered non-essential, as a means of raising government revenues without placing the burden on essential items.

Tax Incidence

The distribution of the economic burden of a tax between buyers and sellers, depending on the elasticity of demand and supply.

Net Profits

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Goods And Services

Refers to the tangible products (goods) and intangible items (services) produced and offered in an economy.