Asked by Breanna Lamar on Apr 29, 2024
Verified
Which of the following is true about a nontrading partnership?
A) Its regular business is buying and selling merchandise.
B) It has no normal borrowing needs.
C) It borrows money to avoid cash flow problems.
D) It has an inventory.
Nontrading Partnership
A type of partnership that engages in activities other than the buying and selling of goods, often focusing on services or other ventures.
Cash Flow Problems
Financial issues that occur when a business does not have enough cash to meet its short-term liabilities and operating expenses.
- Absorb information on the repercussions of partnership agreements for the jurisdiction of partners, their financial responsibilities, and the decision-making framework.
Verified Answer
ZK
Zybrea Knight
May 04, 2024
Final Answer :
B
Explanation :
A nontrading partnership has no substantial inventory and is usually engaged in providing services-for example,accounting services or real estate brokerage.Such partnerships have no normal borrowing needs.
Learning Objectives
- Absorb information on the repercussions of partnership agreements for the jurisdiction of partners, their financial responsibilities, and the decision-making framework.
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