Which one of the following is not a feature of 1 a. Limited life. partnerships?
ID: 2391031 • Letter: W
Question
Which one of the following is not a feature of 1 a. Limited life. partnerships? b. Limited liability Mutual agency. C- d. Voluntary association. assets and paying the proceeds to creditors and owners refers to a. dissolution. b. unlimited liability. c. mutual agency. d. liquidation. A and B receive a salary allowance of S63,000 and $81,000, respectively, and share nder equally. If the company earned $90,000 during the period, what is the effece 3. Partners the remai on A's capital? a. $63,000 increase. b. $36,000 decrease c. $36,000 increase. d. $45,000 increase. 4 A invests $60,000 for a one-fifth interest in a partnership in which the other partners have tal totaling $180,000 before admitting A. After distribution of the bonus, what would capital t A's capital be? a. $32,000. b. $36,000. c. $60,000. d. $48,000. B invests $120,000 for a 20 percent interest in a partnership that has total capital of $400,000 after admitting B. Which of the following is true? a. B's capital is $120,000. b. B's capital is $56,000. c. B received a bonus of $40,000. d. The original partners received a bonus of $40,000. 5.Explanation / Answer
Since, multiple questions have been posted, I have answered the first one.
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Question 1:
Limited Liability. (which is Option B)
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Explanation:
Partnership has a limited life. It can come to an end with the death/retirement of a partner. It may even end with the acceptance of a new partner in the firm. It can also end on a date specified in the agreement. Therefore, Option A is a feature of partnerships.
Partners are personally liable to pay off the liabilities of the firm. In case of any issue/default, creditors can attach personal assets and resources of the partners in order to settle their dues. Therefore, Option B is not a feature of partnerships.
The act of each partner is binding on all the other partners of the firm and each partner has the right to act on behalf of the partnership firm (mutual agency). Therefore, Option C is a feature of partnerships.
A partnership is a mutual agreement between the partners who decide voluntarily to operate/run a business together subject to some predefined terms and conditions (which are generally laid down in the partnership agreement). Therefore, Option D is a feature of partnerships.
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