Daria Is a Partner in a Small Coffeeshop

question 4

Multiple Choice

Daria is a partner in a small coffeeshop.If she acts with actual or implied authority,then she has

• A)the power to bind the partnership,but not the right.
• B)the right to bind the partnership,but not the power.
• C)both the power and the right to bind the partnership.
• D)neither the power or the right to bind the partnership.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, reflecting the owning company's proportionate share of the investee's profits.

Unrealized Gain Or Loss

Changes in the fair value of equity or debt securities for a period.

Dividend Yield

The ratio of a company's annual dividends paid to its share price, expressed as a percentage.

Valuation Allowance

A reserve created by a company to offset a portion of the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.