Briefly explain the formation of a general partnership
What will be an ideal response?
A business must meet four criteria to qualify as a general partnership under the Uniform Partnership Act (UPA). It must be 1. an association of two or more persons, 2. carrying on a business, 3 . as co-owners, 4. for profit. A general partnership is a voluntary association of two or more persons. All partners must agree to the participation of each co-partner. A business—a trade, an occupation, or a profession—must be carried on. The organization or venture must have a profit motive in order to qualify as a partnership, even though the business does not actually have to make a profit. Receipt of a share of business profits is prima facie evidence of a general partnership because nonpartners usually are not given the right to share in a business's profits.
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Paid-in surplus is classified as:
a. owner's equity b. net working capital c. a current asset d. a cash expense e. long-term debtf
The Securities and Exchange Commission (SEC)
A) regulates both primary and secondary markets. B) regulates initial public offerings, but not seasoned equity offerings, in the primary market. C) regulates only initial public offerings, or IPOs. D) regulates only primary market transactions to ensure investors are provided with adequate and accurate information on new securities.