Which One of the Following Statements Is Correct with Respect

question 196

Multiple Choice

Which one of the following statements is correct with respect to the creation of a partnership agreement?

• A) For a partnership to exist, the relationship giving rise to it must be of an ongoing business nature, not a one-time promotion.
• B) A partnership can be created by an intention to share the revenues between the partners.
• C) For a person to be a limited partner, there must be at least two general partners.
• D) A partnership can be created only by contract.
• E) Where two people agree to enter into a partnership, there is no partnership created unless all of the elements of a contract are present.

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Definitions:

Allocative Inefficiency

A situation in which resources are not distributed optimally among producers or consumers, leading to a loss in economic efficiency.

Profit-Maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal cost is equal to marginal revenue.

Marginal Cost

The bump in expenditure for manufacturing an additional unit of a product or service.

Price

The cost in financial terms anticipated, necessitated, or disbursed for something.