Asked by Nicholas Pride on Jul 28, 2024
Verified
"Limited life" in a partnership agreement means:
A) a partnership is limited in the amount of debt it is liable for in the course of the business.
B) a partnership is limited to the amount of revenue it can earn.
C) a partnership may be dissolved if the location of the business has changed.
D) a partnership may be dissolved as the result of any change in the ownership.
Limited Life
Refers to the finite existence of certain assets, indicating they will only last for a specific period before ceasing to be useful.
- Understand the fiscal consequences and the idea of finite duration in partnerships.
Verified Answer
AF
amira foudaJul 28, 2024
Final Answer :
D
Explanation :
"Limited life" refers to the fact that a partnership may be dissolved or significantly altered due to changes in ownership, such as the departure or death of a partner. This contrasts with corporations, where ownership changes (buying and selling of shares) do not affect the existence of the entity.
Learning Objectives
- Understand the fiscal consequences and the idea of finite duration in partnerships.