Fred and Carole Were Trying to Create a List of the Pros

question 92

Multiple Choice

Fred and Carole were trying to create a list of the pros and cons of sole proprietorship,partnership,and corporation to determine the best structure for carrying on business.Which of the following is true with regard to being a general partner?

• A)Each partner is an agent for every other partner and for the firm itself,so a partner may be liable for the contracts made by an incompetent partner.
• B)Every general partner faces limited liability for the debts of the partnership.
• C)A partner is liable for only the amount that he or she invested in the partnership firm.
• D)Retiring from a partnership by giving notice to the partners frees a partner from the liabilities he or she faced while being a partner of the firm.
• E)A partner is liable to pay from his or her personal assets only when the partner has committed a criminal act.

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Definitions:

Expert and Novice

A distinction in skill level and understanding between individuals; experts possess a high level of knowledge and competence in a particular domain, while novices have limited experience and proficiency.

Individual Differences

Variations among individuals in their psychological traits, abilities, and behaviors.

Stable Patterns

Consistent and predictable behaviors or configurations that remain unchanged over time.

Field Dependence/Independence

A cognitive style that describes individuals' tendency to rely on or disregard the surrounding context in processing information.