Which of These Is Not a Provision of the Partnership

question 5

Multiple Choice

Which of these is not a provision of the Partnership Act?

• A) No person may be introduced as a partner without the consent of all existing partners.
• B) Each partner is allowed to withdraw a maximum of 25% of their capital per annum.
• C) A partner is not entitled to interest on the capital subscribed by him/her.
• D) Partners are entitled to share equally in the partnership profits.

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Definitions:

Barriers to Entry

Obstacles that make it difficult for new firms to enter a market, such as high startup costs or stringent regulations.

X-inefficiency

The production of output, whatever its level, at a higher average (and total) cost than is necessary for producing that level of output.

Price-Discriminated

A pricing strategy where a seller charges different prices for the same product or service to different buyers, based on factors like demand, market conditions, or buyer characteristics.

Pure Monopolist

A market scenario where a single firm is the sole provider of a product or service, facing no competition.