In the context of legal forms of business, identify an accurate statement about a general partnership.
A. A single partner operates as the firm's manager and is directly responsible for any debts owed by the firm.
B. Established partners can bring in new equity partners by surrendering a portion of their ownership position.
C. The partner with the largest equity stake makes decisions about the firm's operations.
D. Owners report their shares of losses or profits independent of their interest in the firm.
Answer: B
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A company's board of directors plays an independent and fiduciary role in corporate governance and the strategy-making, strategy-executing process. True or false? Please explain.
What will be an ideal response?
If a partner continues a partnership beyond the originally agreed-on term, the partner has ________.
A. an unconditional right B. no right to continue C. a right to continue only if it is agreed upon by the majority of partners D. a right to continue until the firm is liquidated or a new partner joins the firm
The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which ________ and ________ costs.
What will be an ideal response?
On June 18, Wyman Company (a U.S. Company) sold merchandise to the Nielsen Company of Denmark for €85,000 (Euros), with a payment due in 60 days. If the exchange rate was $1.60 per euro on the date of sale and $1.39 per euro on the date of payment, Wyman Company should recognize a foreign exchange gain or loss in the amount of:
A. $85,000 loss. B. $17,850 gain. C. $118,150 loss. D. $85,000 gain. E. $17,850 loss.