F5 Econ Cert MC on Types of Business Ownership

Since you're only doubt about C and D, I only explain them.
For C, it is the fact. Only general partners can take part in the management of the partnership, i.e. Bonnie and Angie.
For D, it is not the case because a limited partner cannot withdraw from the partnership. Thus D cannot be true.
Note: If D becomes
[Alex's death would not bring the partnership to an end].
then it is correct as the death of a limited partner would not dissolve the partnership.


2008-04-19 14:33:27 補充：
等我都解解A同B啦:
For A and B, they may not be true, as profit sharing ratio and capital invested are agreed by partners themselves.
In fact, both things are usually different ( if you take PA then you know that very well ).

2008-04-19 14:37:30 補充：
下面嗰個答錯嘢: e+係有3個partners而唔係兩個, 就算Alex走咗都仲有兩個, 咁又點會變咗sole-proprietorship呢? 頂多係general partnership。

2008-04-19 14:39:42 補充：
可能真實嘅情況會有差異, 不過書係咁寫而我只係跟住咁答

A & B. The profit sharing ratio is determined by mutual agreement between partners. There is no requirement that a ratio be fixed nor on a 50:50 basis. Money injected to the partnership should in theory be in the same proportion of the profit sharing ratio. However, this is not a rule but simply by mutual agreement.
D. There is only 2 partners in the firm. If Alex withdraws from the partnership, the status of the firm has been changed from partnership to a sole-proprietorship, a change in legal structure. Angie will then be fully liable for all the debts or liabilities thereafter as the business is now being run under a sole-proprietorship. So, Alex's withdraw would bring the partnership to an end.