Solved

Match the Definition with Its Term

Question 191

Matching

Match the definition with its term.

Premises:
Without an agreement, the law will stipulate this method of sharing profits and losses
When a partnership cannot pay its debts with business assets, the partners must use personal assets to meet the debt
Agreement that is the contract between partners
Causes the dissolution of a partnership
The final step in the liquidation of a partnership
Every partner can bind the business to a contract within the scope of the partnership’s regular business operations
A voluntary association of two or more persons who co-own a business for profit
The process of going out of business by selling the entity’s assets and paying its liabilities
Responses:
unlimited liability
articles of partnership
partnership
mutual agency
liquidation
equally
distribution of remaining cash to partners
death of a partner

Correct Answer:

Without an agreement, the law will stipulate this method of sharing profits and losses
When a partnership cannot pay its debts with business assets, the partners must use personal assets to meet the debt
Agreement that is the contract between partners
Causes the dissolution of a partnership
The final step in the liquidation of a partnership
Every partner can bind the business to a contract within the scope of the partnership’s regular business operations
A voluntary association of two or more persons who co-own a business for profit
The process of going out of business by selling the entity’s assets and paying its liabilities
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