Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 1, Problem 4DQ
Summary Introduction
To Explain:The type of
Introduction:
Partnership:
Partnership refers to a type of business in which two or more people agree to share the responsibility of managing the business, profits and losses through a partnership deed. The
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What form of partnership allows some of the investors to limit their liability?
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A partnership is less stable because it can easily disssolved. *
What is the basis of capital sharing if the partners do not have an agreement as to of their individual capital contribution?.
Chapter 1 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
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- Which one of the following would not be considered in the development of a partnership agreement? A. profit and loss levels B. processing disputes C. stock options D. asset contributionsarrow_forwardWhy do partnerships dissolve?arrow_forwardNo plagiarism please Q1. Limited liability is a weakness of sole proprietorship and partnership. Why? Explain.arrow_forward
- Being in a business of partnership: O a. Increases Individual risk O b. None of these O c. Does not involves any individual risk d. Decreases Individual riskarrow_forwardWhy an outstanding weakness of a limited partnership interest as an investment is its lack of liquidity or marketability?arrow_forwardWhich one of the following is not an advantage of partnership? a. Less profit because profit is shared b. Increased capital c. Increased knowledge and specialist skills d. Shared riskarrow_forward
- Can a partners personal assets in a limited liability partnership be at risk?arrow_forward6. Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on capital c.Interest on loan from bank d.Withdrawal of capitalarrow_forwardWhat is the legal provision of Profit sharing ratio if nothing is given in ‘Partnership Deed”?arrow_forward
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