Briefly explain the formation of a general partnership
What will be an ideal response?
A business must meet four criteria to qualify as a general partnership under the Uniform Partnership Act (UPA). It must be 1. an association of two or more persons, 2. carrying on a business, 3 . as co-owners, 4. for profit. A general partnership is a voluntary association of two or more persons. All partners must agree to the participation of each co-partner. A business—a trade, an occupation, or a profession—must be carried on. The organization or venture must have a profit motive in order to qualify as a partnership, even though the business does not actually have to make a profit. Receipt of a share of business profits is prima facie evidence of a general partnership because nonpartners usually are not given the right to share in a business's profits.
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Qualified opinions can only be issued by auditors for which of the following?
a. Violations of GAAP. b. Scope limitations. c. Going concern. d. Lack of independence. e. Either A and B.
How should Focus company record expenditures for research and development costs according to US. GAAP?
a. expense as incurred b. capitalize and depreciate c. amortize them over 60 months d. none of the above
Economic communities are also known as ________
A) global firms B) free trade zones C) management communities D) production communities E) open channels
Which of the following is most effective to show tasks that must be completed in a certain order?
a. a bulleted list b. a paragraph c. an enumerated list d. a table