Asked by Daija Talley on May 03, 2024
Verified
Which of the following is not a characteristic of a general partnership?
A) The partnership is created by a contract.
B) Mutual agency exists.
C) Partners share equally in net income or net losses unless an agreement states differently.
D) Dissolution occurs only when all partners agree.
Dissolution
The process of legally dissolving a corporation or partnership, involving the cessation of its business operations and the distribution of its assets.
General Partnership
A business structure where two or more individuals share ownership, responsibilities, profits, and liabilities.
Mutual Agency
A legal principle in partnerships where each partner has the authority to bind the partnership (and other partners) in contracts related to the business's usual operations.
- Recognize the distinct features of a general partnership, such as mutual agency, simple formation process, and the implications of having a limited lifespan.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
Dissolution may occur upon the occurrence of certain events, such as the death or withdrawal of a partner, even if not all partners agree. Therefore, D is not a characteristic of a general partnership.
Learning Objectives
- Recognize the distinct features of a general partnership, such as mutual agency, simple formation process, and the implications of having a limited lifespan.