Which of the Following Statements Best Describes a Partnership

question 58

Multiple Choice

Which of the following statements best describes a partnership?

• A) Partnerships are only created when they have been properly registered with the government.
• B) Partnerships are created when two or more persons specifically agree to be in partnership.
• C) Partnership involves two or more persons carrying on business with a view towards profits.
• D) Partnerships are like any other form of contract; they can only be created when there is consensus between the parties in the form of offer and acceptance to that effect.
• E) Partnerships involve limited liability.

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Definitions:

Divisional Autonomy

The extent to which individual divisions or units within a larger organization are given the freedom to operate independently and make their own strategic decisions.

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales staff salaries, and commission.

Shared Service Unit

An organizational unit that consolidates and provides specific services, such as HR or IT, to multiple departments within a company to improve efficiency and reduce costs.

Centralisation

The process of concentrating decision-making authority at higher levels of an organization, leading to centralized control.