Which One of the Following Is Correct with Respect to the Rights

question 10

Multiple Choice

Which one of the following is correct with respect to the rights of partners unless they have agreed otherwise?

• A)No major decision can be taken without a majority vote agreement of all partners.
• B)Only the partners that have contributed the largest capital amount have the right to share in management.
• C)All profits are shared equally among the partners.
• D)A partner can sell her share of the partnership to another person without the agreement of the other partners.
• E)Personal expenses incurred by the partners in the course of business are reimbursed.

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Definitions:

Unit Variable Costs

The costs that vary directly with the volume of production or sales, such as materials and labor.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion available to cover fixed costs and generate profit.

Operating Income

Income generated from a company's ongoing, core business operations, excluding deductions of interest and taxes.

Variable Costs

Costs that vary directly with the level of production or business activity.