Accounting

Since all partners are bound together in the agreement and each acts on the behalf of the partnership, ________ has been established. A) Limited life B) limited risk C) mutual agency D) unlimited liability when a partnership is terminated, the assets are turned into cash, and obligations are paid. This process is called

A. dissolution.         

B. termination.       

C. realization.          

D. None of the above          

In comparison with the proprietorship form of business organization, forming a partnership offers which advantage?

A. Limited life          

B. Legal liability of each partner for all of the debts 

C. Combination of ability and experience of the partners  

D. Simple transfer of interest in the partnership to outsiders