Mention some areas where partnerships are common. Give reason for your answer
The areas where partnerships are common include single-purpose ventures where the scope for disagreement is likely to be small and long-term plans need not be made, for example, the purchase and remodeling of a building that the partners intend to resell. Professional group practices in medicine, law, and accounting, are another example. Partners in such groups will have similar backgrounds and skills, and each of their incomes will largely be determined by individual effort. It is thus relatively easy to evaluate potential new partners, to change existing agreements that treat partners symmetrically, and to evaluate an individual partner's performance.
You might also like to view...
Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's excess reserves increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
Which of the following is an example of a zero-sum game?
a. Jill decides to buy a television set from Jack for $500. b. Angela buys a jacket worth $30 from the apparel store near her apartment. c. Rachel decides to buy Sarah's couch and is willing to pay whatever price Sarah might ask for it. d. Joanna buys a camera at a Thanksgiving sale and gets a tripod free.