Which of the Following Is True About a Nontrading Partnership

question 20

Multiple Choice

Which of the following is true about a nontrading partnership?

• A)Its regular business is buying and selling merchandise.
• B)It has no normal borrowing needs.
• C)It borrows money to avoid cash flow problems.
• D)It has an inventory.

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Definitions:

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Rights Offering

A method by which companies raise additional capital by giving existing shareholders the right to subscribe to new shares at a discount.

Actual Value

The true or market value of an asset, not influenced by any external conditions, often used in financial and appraisal contexts.