Before a new partner is admitted, the balances of a partnership's asset accounts should be stated at

a.book values.

b.current market values.

c.their current account balances.

d.None of these choices are correct.

Unless otherwise stated in the partnership agreement, income (and loss) is allocated to each partner

a. according the hours worked by the partners.

b. based on the ratio of capital investments.

c. based on the ratio of salary allowances.

d. equally.

Which of the following forms of business entity enjoys limited liability and pass-through tax treatment?

a.Proprietorship

b.Corporation

c.Partnership

d.Limited liability company

Which one of the following business forms has unlimited liability?

a.Proprietorship

b.Corporation

c.Limited liability company

d.All of these choices are correct.