Which Statement Concerning Drawings by Partners in a Partnership Is

question 42

Multiple Choice

Which statement concerning drawings by partners in a partnership is true?

• A) Interest is charged on drawings if the partnership agreement is silent on the matter.
• B) Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.
• C) Drawings are generally regarded as withdrawals of future profits.
• D) Drawings are taken into account when calculating the final distribution of profit between the partners.

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Definitions:

Theory Z

A management approach that integrates Japanese and American business practices, focusing on long-term employment, collective decision-making, and holistic concern for employees.

Japanese Management Practices

Business strategies and cultural approaches unique to Japanese companies, emphasizing consensus, quality, and continuous improvement.

Long-Term Employment

A form of employment characterized by job stability, where an individual holds positions within a company or industry for an extended period, often leading to benefits such as pensions.

Australasian Company

A company that operates in Australia, New Zealand, and sometimes in the neighboring islands in the Pacific.