A Partnership

question 198

Multiple Choice

A partnership:

• A) Is also called a sole proprietorship.
• B) Has unlimited liability.
• C) Has to have a written agreement in order to be legal.
• D) Is a legal organization separate from its owners.
• E) Is a non-business organization.

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Definitions:

Liability

A financial obligation or amount owed by a business to others, such as loans, accounts payable, or mortgages.

Money Orders

A payment order for a pre-specified amount of money; it functions as a form of prepaid payment instrument.

Cash

Liquid assets held or accessed by an entity for transactions, funding liabilities, and operational purposes.

Sarbanes-Oxley Act

A United States federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.