Which of the Following Represents a Partner's Right to an Interest

question 25

Multiple Choice

Which of the following represents a partner's right to an interest in the partnership?

• A) A partner has no right to an interest in the partnership.
• B) The right is composed only of the partner's share of profits.
• C) The right is composed only of the partner's right to return of capital contributed by the partner.
• D) The right is composed only of the partner's right to return of capital contributed by the partner and any wages due.
• E) The right is composed of a combination of the partner's share of the profits and a return of capital contributed by the partner.

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Definitions:

Perfectly Inelastic

A situation in which the quantity demanded or supplied does not change regardless of the price changes.

Excise Tax

A tax imposed on specific goods and services, such as gasoline, cigarettes, and alcohol.

Upsloping

Describes a line or curve on a graph that moves upward as it progresses from left to right, often used to depict positive relationships between variables.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale, holding all else constant.