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

question 68

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 the partners.
• B) Only the partners that have contributed the largest capital amount have the right to share in management.
• C) Personal expenses incurred by the partners in the course of business are reimbursed.
• D) All profits are shared equally between the partners.
• E) Partners can sell their share of the partnership to another person without the agreement of the partners.

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Definitions:

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Earnings Before Taxes

A company's profitability measure calculated by subtracting all expenses, except taxes, from revenues.

Earnings Per Share

A company's profit divided by its number of outstanding shares of common stock.