Which of the Following Statements Best Describes Partnerships

question 28

Multiple Choice

Which of the following statements best describes partnerships?

• A) In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
• B) Partnerships have trouble attracting large capital due to such factors as unlimited liability, and the illiquidity of partnership interests.
• C) A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster-growing company.
• D) A major disadvantage of all partnerships relative to all corporations is the fact that taxes must be paid by the partners rather than by the firm itself.

Identify the factors that contribute to favorable (F) and unfavorable (U) variances.

Apply budgeting concepts to both manufacturing and service industry contexts.

Assess the financial performance of a business using variance analysis.

Utilize budgeting formulas to calculate and analyze financial measures.

---

Definitions:

Work-Related

Pertaining to activities, conditions, or situations that are part of, influenced by, or occur in the context of one's occupation or job responsibilities.

Nonverbal Behavior

The communication of emotions, feelings, and attitudes through actions or expressions rather than words, such as gestures, facial expressions, and body posture.

Communication

The process of exchanging information, ideas, feelings, and messages between individuals or groups, through various means and channels.

Hypertensive Crisis

A severe and dangerous increase in blood pressure that can lead to stroke, heart attack, or other critical conditions if not treated immediately.