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:

Market

A system or an arena where parties engage in exchange of goods, services, or information.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Historic Buildings

Structures that hold historical significance due to their architecture, association with important events, or cultural impact.

External Costs

Costs of economic activities that are not reflected in the market price, affecting parties who did not choose to incur that cost.