Answer the following statements true (T) or false (F)
1. A partnership is a business with two or more owners that is legally organized as a corporation.
2. The articles of partnership is a written contract between partners that specifies the name, location, and
nature of the business; the duties of each partner; and the method of sharing profits and losses among
the partners.
3. A written partnership agreement is also known as the articles of partnership.
4. The addition of a new partner to a firm does not dissolve the old partnership.
5. Mutual agency means that any partner can legally bind the other partners and the partnership to
business contracts within the scope of the business's regular operations.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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A gratuitous agency is not a true agency because it is not formed by contract
a. True b. False Indicate whether the statement is true or false
An option contract requires the offeror to:
a. keep an offer open for a specified period of time b. offer more than one option c. keep an offer under a certain price d. limit an offer to a certain number of offerees e. give at least a day's notice before withdrawing the offer
When the project sponsor and manager are determining how to create the project culture, ethics should be an important consideration.
a. true b. false
Lee and Pat are married taxpayers living in Louisiana. Lee earns wages of $40,000 and has $5,000 of dividend income from separate property. Lee and Pat have interest income from community property of $10,000 . If Lee and Pat file separate income tax returns, what amount of income must be included on Lee's separate tax return?
a. $50,000 b. $30,000 c. $27,500 d. $25,000 e. None of the above