How is a general partnership organized?
(A) Only one partner is responsible for the debts of the partnership.
(B) Every partner shares equally in both responsibility and liability.
(C) The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership.
(D) No partner is responsible for the debts of the partnership beyond his or her investment.
Ans: (B) Every partner shares equally in both responsibility and liability.
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What is the drawback of deposit insurance facility?
A. Even when the DI is in trouble, the deposit holder has no incentive to run. B. DIs are more likely to increase the liquidity risk on their balance sheets. C. Deposit holder's place in line affects his or her ability to obtain their funds. D. Deposit insurance does not deter contagious runs and panics. E. Deposit holders are less likely to panic if there is a perceived bank solvency problem
Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement audit?
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