3. Which one of the following situation a partnership firm will have goodwill? a.The firm is availing a loan from a bank b.The firm is earning a normal profit c.The firm is incurring a loss d.The firm is earning a super profit
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- Which one of the following situation a partnership firm will have goodwill? a. The firm is earning a super profit b. The firm is incurring a loss c. The firm is availing a loan from a bank d. The firm is earning a normal profit1. For the risk-return principle implies that the riskier a given course of action, the higherthe expected return must be. (T) (F)2. General partners have unrestricted transferability of ownership, while limited partnersmust have the consent of all partners to transfer their ownership. (T) (F)3. Owners must register and pay yearly fees to their State of residence when establishinga sole proprietorship. (T) (F)4. The purpose of financial markets is to bring borrowers and savers together. (T) (F)5. In Financial markets, borrowers and lenders most both be located in the same country. (T) (F)6. Beginning cash balance + cash flow from operations + cash flow from investingactivities + cash flow from financing activities = ending cash balance. (T) (F)7. On a common size balance sheet, total assets are equal to 100%. (T) (F)8. The income statement shows a company's earnings since it has been in business. (T) (F)9. The balance includes information about the company's assets and liabilities. (T)…6. 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 capital
- 7) Which one of the following is a gain to the partnership firm? a. Interest on drawings b. Interest on loan from bank c. Interest on capital d. Withdrawal of capitalPartnership is the economic relationship between two or more persons: a. Who will not pay goodwill b. Who have agreed to not to share profit c. Who will not contribute capital d. Who have agreed to share profitWhich one of the following is a gain to the partnership firm? a. Interest on loan from bank b. Interest on capital c. Withdrawal of capital d. Interest on drawings
- A capital deficiency can be eliminated by the following except A.Offsetting against a partner’s loan B.Additional investment C.Selling non cash assets at a gain D.Loss to the other partnersWhich 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 riskA firm may choose to enter a new market through a joint venture. All of the following features of a joint venture reduce the risk associated with market entry EXCEPT: A. The partner firm will understand the local business environment. B. The local partner has an existing reputation in the country. C. Ability to easily integrate with the partner company culture. D. The cost of entry is shared by the joint venture partner firm.
- Partnership is the economic relationship between two are more persons: a. Who have agreed to share profit b. Who have agreed to pay tax c. Who have agreed to share goodwill d. Who have agreed to share commission_____________ is a disadvantage of Partnership. a. Potential disagreements between partners b. Great range of skills c. Shared responsibilities d. More capitalWhich of the following is not a characteristic of a partnership firm? Select one: A. Limited Liability B. Easy Formation C. Mutual Consent D. Equal Profits