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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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_forwardCan a partners personal assets in a limited liability partnership be at risk?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
- Which of the following is a disadvantage of the partnership form of organization? A. limited life B. no taxation at the partnership level C. flexibility in business operations D. combining of financial resourcesarrow_forwardWhy do partnerships dissolve?arrow_forwardWhich of the following is not a characteristic of a partnership firm? Select one: A. Limited Liability B. Easy Formation C. Mutual Consent D. Equal Profitsarrow_forward
- LO.3 Compare the provision for the nonrecognition of gain or loss on contributions to a partnership (i.e., § 721) with the similar provision related to corporate formation (i.e., § 351). What are the major differences and similarities?arrow_forwardWhich of the following methods of partnership admission will not result in a change in partnership capital?arrow_forwardWhich sentence is not true? Select one: a. In Partnership, the ownership divided into shares of stock. b. Profit or loss has an effect on the owner's equity. c. Companies usually prepare 4 financial statements. d. Assets are resources for providing future services or benefits.arrow_forward
- 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 capitalarrow_forwardWhich of the following is likely to be included in the restrictive covenants in the limited partnership agreement? Group of answer choices a. Max % to be invested in any one portfolio firm. b. Taking debt c. Co-investment by GPs d. Raising another fund e. all the above.arrow_forwardWhy is it important for all partners in a partnership to be on the same page in regard to the method used? What happens if they can not agree?arrow_forward
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