Which of the Following Is True Regarding the Effect of the Death

question 43

Multiple Choice

Which of the following is true regarding the effect of the death of a partner on a general partnership?

• A) Unless there is an agreement to the contrary,the partnership dissolves upon the death of a partner.
• B) Unless there is an agreement to the contrary,the partnership ceases to exist 10 days after the death of any partner.
• C) The remaining partners must by operation of law continue the partnership for at least one year.
• D) Within 90 days the remaining partners may elect to continue the partnership.

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Definitions:

Competitive Industry

An industry characterized by many firms competing with each other by offering similar products or services, typically resulting in benefits for consumers through lower prices and higher quality.

Economic Profits

Economic profits represent the surplus revenue after all costs, including opportunity costs, have been deducted from total revenues, reflecting the real profitability of a venture.

Average Cost

The total cost of production divided by the quantity produced, used to determine the efficiency and profitability of production.

Competitive Firm

A company operating in a market where it must compete against others for the same customers or resources, characterized by its efforts to offer better products, prices, or services.