Which of the Following Is True About the Effect of Partnership

question 27

Multiple Choice

Which of the following is true about the effect of partnership agreement?

• A)The dissociations listed in the RUPA are merely default rules.
• B)The partners cannot change the definition of wrongful dissociations.
• C)Partners cannot require dissociation if a partner transfers his transferable partnership interest.
• D)The effects of nonwrongful dissociation cannot be changed.

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Definitions:

Drawings

Withdrawals made by an owner from the business for personal use, reducing the capital account of the owner.

Capital Investment

Funds invested in a business by the owners or shareholders to purchase assets or to provide working capital with the aim of generating long-term revenue and profits.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative financial performance.

Capital Balance

The amount of money invested in a business by its owners plus any retained earnings or minus any losses.