Which of the Following Is Incorrect with Respect to the Creation

question 124

Multiple Choice

Which of the following is incorrect with respect to the creation of a partnership?

• A)A partnership can only be created with the consent of the parties.
• B)The duties and obligations of partners to each other can be modified by agreement.
• C)The business activity must be continuing in order for it to indicate the existence of a partnership.
• D)The common method of creating a partnership is by agreement.
• E)An important indication as to whether a partnership exists is the sharing of the profits of the business activity.

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Definitions:

Testamentary Trust

A legal mechanism specified in a will that comes into effect upon the death of the individual, and dictates how their assets are allocated.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Personal Representative

is an individual appointed to manage the estate of a deceased person, including distributing assets to beneficiaries.

Intestate Succession

The process by which the property of a deceased person is distributed by law to heirs when that person dies without a valid will.