Which of the Following Will Establish the Existence of a Partnership

question 34

Multiple Choice

Which of the following will establish the existence of a partnership?

• A)The goodwill portion of the sale of a business is repaid by a share of the profits.
• B)An employee receives a profit-sharing bonus.
• C)The beneficiary of a deceased partner takes that partner's share of the income from the partnership.
• D)The parties intend to share the expenses of the business.
• E)A debt is repaid by the creditor taking a share of the profits.

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Definitions:

Income Effect

The alteration in a person's or economic system's earnings and the effect of this alteration on the demand for a particular product or service.

Wage Decrease

A reduction in the hourly or salaried compensation paid to workers.

Utility Maximizing

The economic principle that individuals and firms strive to achieve the highest satisfaction or benefit from their resources and choices.

Industry Demand Curve

A graphical representation showing the quantity of a product that consumers in an industry are willing and able to purchase at each price over a period of time.