BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There are 4 owners in a business partnership. The business makes a profit of $100. Each owner makes:
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$400 profit
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$100 profit
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$25 profit
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$20 profit
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Explanation:
Detailed explanation-1: -25. Liability of a partner for acts of the firm Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner.
Detailed explanation-2: -A business with two or more owners can be a partnership. Much like a sole proprietorship, forming a general partnership does not require filing any documents or taking any specific action.
Detailed explanation-3: -Maximum no. of partners in a partnership firm is 50.
There is 1 question to complete.