Which One of the Following Statements Is True

question 76

Multiple Choice

Which one of the following statements is true?

• A) Partnerships are more costly to form than a trust.
• B) For partnerships, all profits flow through to the owners in proportion to their ownership interest.
• C) The lives of partnerships are not flexible.
• D) A partnership is limited to two owners.

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Definitions:

Account Payable

An obligation of a business to pay a short-term debt to its suppliers or vendors for goods or services received.

Bill Onscreen Form

An electronic version of a bill presented to a customer through a digital platform.

Vendor Transaction

A financial transaction occurring between a business and its vendor, typically involving the purchase of goods or services.

Services Billed

Charges invoiced to a client or customer for professional services or work completed.