State the purpose of gaining ratio:

a.

None of these are correct.

b.

To determine the amount of compensation to be paid by the incoming partner to the sacrificing partners.

c.

It is calculated for the sake of new partners admission

d.

To determine the amount of compensation to be paid by each of the continuing partners to the outgoing partner.

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Which of the following is False about a partnership business?

a.

Partners in general partnerships have unlimited liability

b.

A partnership is a voluntary association

c.

Partnerships have limited life

d.

Partnerships pay income taxes