Return on assets is calculated by dividing net profit by total assets.
In this case, total assets are the equity of $200,000 plus the liabilities of $400,000, for a total of $600,000. Therefore, the return on assets is 0.15 or 15%.
To calculate return on assets, you first need to determine the total assets. This is calculated by adding the equity and liabilities of a company. In this case, the equity is $200,000 and the liabilities are $400,000, resulting in a total of $600,000.
Then, you divide the net profit of the company by this total. In this example, the net profit is $90,000, so you divide it by the total assets of $600,000. The result is 0.15, which is the same as 15%.
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which of the following is not a dimension of quality listed in the textbook? a. durability b. performance c. status d. aesthetics
The dimension of quality not listed in the textbook is 'status.Quality refers to the characteristics of a product or service that determine its ability to satisfy specified requirements.
Quality management is a method of implementing quality policies and procedures that make it possible to meet or exceed customer expectations while minimizing waste and reducing costs. It also involves the coordination of activities that ensure that goods and services are delivered as promised. The dimensions of quality listed in the textbook are as follows:Durability: The length of time the product will last under normal use and the conditions of operation.
Performance: A product's main features, such as speed, accuracy, ease of use, and reliability. Aesthetics: The product's appearance, texture, and other sensory characteristics, such as sound and feel. Features: Additional elements of the product that contribute to its usefulness beyond its basic function. Reliability: A product's ability to perform consistently without failure or breakdown. Conformance: How well a product complies with established design and performance standards.
Serviceability: How well a product can be serviced and repaired when necessary.Cost: The product's overall cost, including purchase price, operational costs, and the cost of maintenance and repair.The option that is not included in the dimension of quality in the textbook is 'status.'
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which measure of gdp represents changes in the quantity of goods and services produced in the economy, holding prices constant? answer unselected nominal gdp unselected real gdp unselected net national product
The correct answer is unselected real GDP. The measure of GDP that represents changes in the quantity of goods and services produced in the economy while holding prices constant is Real GDP.
Real GDP is a macroeconomic measure that calculates the total amount of goods and services produced within an economy by applying constant prices over time. Real GDP represents the economy's output in goods and services in a given year, adjusted for inflation, to reflect changes in the quantity of goods and services produced.
Nominal GDP is a measure of economic activity that includes the effects of inflation or deflation, making it difficult to compare GDP figures from one year to the next. Net national product is a measure of the total value of goods and services produced by residents of a country, including its citizens who work and live abroad, minus the depreciation of its capital goods. Therefore, the correct answer is unselected real GDP.
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marine cargo insurance can be purchased from group of answer choices a barratry. msc carla. cogsa. insurance adjuster. freight forwarder.
Marine cargo insurance can be purchased from MSC Carla.
Marine cargo insurance is a type of insurance that helps to cover the cost of losses that occur when shipping goods via the ocean. It can be purchased from a variety of sources, including a freight forwarder, insurance adjuster, and a vessel operator. The primary source for obtaining this type of insurance is a marine insurance company, such as MSC Carla.
Barratry is a term that refers to illegal or unethical activities by a ship’s captain or crew that results in loss or damage to cargo. It is important to note that barratry is not a source of marine cargo insurance. COGSA, or the Carriage of Goods by Sea Act, is a federal law that regulates the liability of ocean carriers for the loss or damage of goods in transit. This law places limits on the liability of carriers and also governs any claims related to the transportation of cargo. An insurance adjuster is a professional who investigates insurance claims, assesses damage, and determines the amount of compensation owed to the insured. Adjusters work with insurance companies and policyholders to resolve claims.
Finally, a freight forwarder is a company that specializes in shipping goods from one point to another. They arrange the transportation of goods, negotiate freight charges, arrange for customs clearance, and provide other services related to the movement of goods.
In conclusion, marine cargo insurance can be purchased from a variety of sources, including an insurance adjuster, freight forwarder, and a marine insurance company. Barratry is not a source of marine cargo insurance, while COGSA and a freight forwarder are related to the transportation of cargo and may be involved in the process.
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although not formally given a leadership role, belinda has a lot of influence on other team members. they like and respect her and feel she has a unique ability to help the team reach its goals. what is belinda? select one.
As per the concept of leadership, Belinda is a prime example of an informal leader. (option b).
Informal leaders are individuals who do not hold any formal leadership position but possess the ability to influence others positively.
Belinda's influence on her team members is a testament to her leadership qualities. As an informal leader, she inspires and motivates her peers through her actions and behavior.
She has a deep understanding of the team dynamics and leverages her knowledge to improve the team's performance. Her approach to leadership is collaborative, and she values the input of all team members. She does not dominate discussions but encourages everyone to contribute their ideas and perspectives.
Hence the right choice is (b).
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Complete Question:
Although not formally given a leadership role, Belinda has a lot of influence on other team members. They like and respect her and feel she has a unique ability to help the team reach its goals. Belinda is a(n)
A) opinion leader.
B) informal leader.
C) peer-to-peer manager.
D) situational leader.
it seems that every month we read an article in the wall street journal about a stock picker with a marvelous track record. do these examples mean that financial markets are not efficient? (lo7-4)
Yes, the examples of successful stock pickers that you see in the Wall Street Journal can be interpreted as evidence that financial markets are not efficient.
This is because efficient markets are ones in which new information is quickly incorporated into asset prices and there is no way for any individual to consistently outperform the market. Therefore, the existence of successful stock pickers could indicate that financial markets are not efficient.
Efficient markets are financial markets where the prices of assets, such as stocks, bonds, and commodities, fully reflect all available information. This means that at any given time, the market price of an asset accurately reflects its underlying value based on all known information
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the government will provide as public goods those goods and services that the market lacks the incentive to produce in the quantities that society desires. true false
The statement, "the government will provide as public goods those goods and services that the market lacks the incentive to produce in the quantities that society desires" is true because Public goods are those which are neither excludable nor rivalrous.
Public goods are essential for society as they offer several social benefits that cannot be realized via market mechanisms.Steps involved in providing public goods by the government are:Identification of public goods: First, the government identifies the public goods that need to be provided to society. For instance, the police force, public infrastructure, public health, etc. are a few examples of public goods provided by the government.
Resource allocation: After identification of the public goods, the government allocates resources for its production and delivery. Production: Then the government starts the production of public goods. Distribution: After the production of public goods, the government distributes them among the general public. The production of public goods requires a considerable amount of investment, which is not feasible for private businesses. Hence, the government has to provide public goods that the market fails to deliver.
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the billings on construction account is a contra account to multiple choice question. construction in progress. accounts receivable. cost of goods sold. sales.
The Billings on Construction Account is a contra account to "Construction in Progress". Thus, Option A is correct.
The Billings on Construction Account is a contra account to Construction in Progress, meaning it is used to offset the balance in the Construction in Progress account. The Billings on Construction Account is used to track the value of work completed on a construction project that has been billed to the client but not yet paid. As the client pays for the work, the balance in the Billings on Construction Account decreases.
Meanwhile, the Construction in Progress account reflects the cost of work completed on the project that has not yet been billed to the client. By using these two accounts, construction companies can accurately track the progress and financial status of their projects.
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may a physician be disciplined by the medical board for entering into a business venture with a patient?
Yes, a physician can be disciplined by the medical board for entering into a business venture with a patient. The American Medical Association's Code of Medical Ethics clearly states that “A physician shall, as far as practicable, avoid creating the possibility of conflict between professional obligation and financial interest.” Furthermore, some state medical boards specifically prohibit such a business venture.
For instance, the Tennessee Medical Licensing Board states, “No licensee shall enter into a business venture with a patient, nor shall a licensee provide services to a patient and receive goods or services, other than fees for professional services, in exchange.” Thus, any violation of such regulations can lead to disciplinary action on physician by the medical board.
Physicians should avoid entering into business ventures with their patients as it may lead to disciplinary action by the medical board. Physicians should instead abide by the rules and regulations set forth by the American Medical Association and the state medical boards.
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just through their normal ways of doing business, multinational corporations sustain stratification. group of answer choices true false
The interlocking factors of education, race, gender, and economic status, among others, form society's organizational structure. true
What constitutes a social stratification example?The world's earliest forms of permanent social stratification have been described as slavery, caste systems, apartheid, and other historical examples—some of which still exist in some form today.
What is the social stratification process?Sociologists use the term "social stratification" to describe the structure of social rank. Social stratification is the division of a society's population into socioeconomic groups according to factors including wealth, income, race, education, and power.
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the initial step in determining the overall conversion value of a convertible bond when converted to
The initial step in determining the overall conversion value of a convertible bond when converted to common stock is to multiply the conversion ratio by the market value per share of the common stock.
How to determine the overall conversion value of a convertible bond?A convertible bond is a type of bond that can be converted into a certain number of shares of common stock by the bondholder. The overall conversion value of a convertible bond is the value of the common shares received when the bond is converted.
The initial step in determining the overall conversion value of a convertible bond when converted to common stock is to multiply the conversion ratio by the market value per share of the common stock. Example: Suppose a convertible bond has a conversion ratio of 50:1 and the market value per share of the common stock is $20. To determine the overall conversion value, multiply the conversion ratio by the market value per share:50:1 x $20 = $1,000This means that if the bondholder were to convert their bond, they would receive $1,000 worth of common stock.
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if the forecasted value of the time series variable for one period is 28.5 and the actual value observed for the same period is 32, what is the forecast error for that period?
The forecast error for the given period will be 3.5 .
The forecast error of a time series can be calculated by subtracting the actual observed value from the forecasted value. The given information is as follows:
Forecasted value for one period = 28.5; Actual value observed for the same period = 32
The formula for calculating the forecast error is given below:
Forecast Error = Actual Value - Forecasted Value
Substituting the given values in the formula, we get:
Error = 32 - 28.5 = 3.5
Therefore, the forecast error for that period is 3.5.
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the glass ceiling paid an annual dividend of $2.20 per share last year. management just announced that future dividends will increase by 2.8 percent annually. what is the amount of the expected dividend in year 5?
In year 5, the expected dividend is $2.39 per share ($2.20 x 1.028^5). Annual dividends are expected to increase by 2.8 percent each year, so in year 5, the dividend would be $2.20 x 1.028^5 = $2.39.
The Glass Ceiling paid an annual dividend of $2.20 per share last year. The management announced that future dividends would increase by 2.8 percent annually. The amount of the expected dividend in year 5 is $2.44 per share. Explanation:
To calculate the expected dividend in year 5, we need to know how the dividends will grow year on year. To do this, we use the compound interest formula. Given that:R = 2.8% = 0.028 (annual growth rate)P = $2.20 (starting dividend)T = 5 years (time)Using the formula for compound interest with annual compounding, we have:FV = PV × (1 + R)TPV = $2.20R = 0.028T = 5 yearsFV = $2.20 × (1 + 0.028)5 = $2.44Thus, the expected dividend in year 5 is $2.44 per share.
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the international value of the canadian dollar (b) canadian net exports (c) the real interest rate in canada (d) the level of investment in canada
The Canadian dollar is the official currency of Canada, and its international value is determined by the relative demand for Canadian goods and services in the global marketplace.
This is determined by the amount of Canadian exports relative to imports. Canadian net exports, which refer to the value of Canadian goods and services sold abroad minus the value of goods and services imported from other countries.
The real interest rate in Canada, which is the rate of interest after adjusting for inflation, can also influence the international value of the Canadian dollar.
When the real interest rate is high, investors may be more likely to invest in Canada and its currency, increasing the demand for the Canadian dollar and thus pushing up its value.
Conversely, when the real interest rate is low, investors may be more likely to invest in other currencies, decreasing the demand for the Canadian dollar and thus pushing down its value.
Finally, the level of investment in Canada can also affect the international value of the Canadian dollar.
When investors have a strong appetite for investing in Canada, the demand for the Canadian dollar increases and pushes up its value.
Conversely, when investors have a weak appetite for investing in Canada, the demand for the Canadian dollar decreases and pushes down its value.
Overall, the international value of the Canadian dollar is determined by a combination of factors, including Canadian net exports, the real interest rate in Canada, and the level of investment in Canada.
All of these factors will interact to determine the value of the Canadian dollar in the global marketplace.
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present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:
The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is $109,000.
This present value is calculated by applying the present value formula which states that the present value of a future sum is equal to the future sum discounted by the appropriate rate of interest.
In this case, $121,000 is discounted by 10% (the discount rate) and multiplied by 1 year to get the present value of $109,000.
The formula for present value is:
PV = FV/(1+r)ⁿ.
In this formula, PV is the present value, FV is the future value, r is the rate of interest, and n is the number of years.
Therefore, $121,000/(1+0.1)¹ = $109,000.
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august 1, 2024, and the calibration service commenced on that date. how many performance obligations exist in this contract?
There are two performance obligations in this contract; one for the calibration service and one for the maintenance service.
The calibration service commenced on August 1, 2024, so it is the only performance obligation in existence at this time.
The calibration service is an obligation on the part of the provider to perform the calibration service on August 1, 2024. This includes any activities that are necessary to complete the service, such as calibrating equipment, providing related documentation, and conducting a quality assurance check.
The maintenance service is an obligation on the part of the provider to perform maintenance activities on the equipment for a period of time specified in the contract.
This includes any activities that are necessary to maintain the equipment in good working order, such as repairs and replacements.
The maintenance service will become an active performance obligation once the calibration service is completed.
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extel inc. acquires components to create its computers from an assortment of suppliers. the company then puts them together according to customer specifications to create custom-made computers. this is an example of
Acquiring components to create its computers from an assortment of suppliers and putting them together according to customer specifications to create custom-made computers is an example of vertical integration.
Vertical integration is a type of business strategy where a company purchases suppliers or distributors in order to increase the company's control over its products, production, or distribution. In this case, Extel Inc. acquires components from various suppliers to create custom-made computers.
This strategy enables Extel Inc. to better manage costs, optimize their product designs, and to create unique products that are tailored to customer specifications. It also allows the company to leverage economies of scale, meaning that the larger the order is, the cheaper the cost of production will be.
In addition, vertical integration reduces the company’s reliance on outside sources for components and services, allowing them to have better control over the production process.
Thus, the given question is an example of vertical integration.
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mark was terminated by his company because of his poor client management skills, which resulted in the company losing one of its major clients. mark's termination best exemplifies . a. dysfunctional turnover b. uncontrollable turnover c. involuntary turnover d. negative turnover
Answer:
c. Involuntary turnover
Explanation:
suppose the country is experiencing unemployment and recession. what would the effects of an expansionary policy be in this situation?
If a country is experiencing unemployment and recession, an expansionary policy would have positive effects.
The expansionary policy is a macroeconomic policy that aims to boost economic growth and reduce unemployment by increasing government spending, reducing taxes, or a combination of both.The following effects can be observed from an expansionary policy in a country experiencing unemployment and recession:
Reduced unemployment: The main goal of an expansionary policy is to reduce unemployment. The expansionary policy increases government spending, which stimulates economic growth and increases demand for goods and services. The increased demand leads to increased production, which leads to more job opportunities. This means that the unemployment rate will fall due to the increased job opportunities.
Increased GDP: An expansionary policy leads to increased economic growth, which leads to an increase in Gross Domestic Product (GDP). This is because of the increased demand for goods and services. The increased demand leads to increased production, which leads to an increase in the GDP. As a result, the economy grows at a faster rate than it would have without the expansionary policy.
Reduced inflation: The expansionary policy aims to increase economic growth and reduce unemployment. This means that there will be an increase in the supply of goods and services, which will lead to a reduction in the price level. This, in turn, will lead to a reduction in the rate of inflation.
Improved standard of living: An expansionary policy leads to increased economic growth, which leads to an increase in the standard of living. This is because people will have more job opportunities, which means that they will have more income. This will allow them to purchase more goods and services, which will improve their standard of living.
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an investor really cares about having voting rights in a firm. which type of financial security should this investor purchase?
The best type of financial security for an investor who cares about having voting rights in a firm is equity.
Equity provides voting rights, but also gives the investor a stake in the company's success. When the company's value increases, so does the value of the investor's equity stake.
Equity is different from other types of financial securities, like debt. Debt does not provide the investor with voting rights and does not give the investor a stake in the company.
Debt also has the potential to lose value if the company fails. With equity, the investor receives a portion of the company's profits in addition to voting rights, giving them an incentive to help the company succeed.
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the primary objective of the income statement is to summarize: multiple choice question. a company's financial position at a point in time. sources and uses of cash. future financing requirements. operating results.
The primary objective of the income statement is to summarize operating results.
An income statement is a financial statement that outlines a company's income and expenses for a specific period, such as a quarter or a year. The income statement shows the company's profit or loss for the period, which is calculated by subtracting expenses from income. The income statement is an essential component of a company's financial statements. The income statement is a financial report that outlines the company's income and expenses for a specific period. The income statement shows the company's operating results and is a fundamental component of a company's financial statements.
The income statement outlines the company's profit or loss for the period, which is calculated by subtracting expenses from income. A company's revenue, cost of goods sold, gross profit, operating expenses, and net income are typically found in an income statement. The income statement demonstrates the business's ability to generate revenue, manage expenses, and generate a profit.
The income statement is an important financial statement because it can be used to evaluate a company's financial health, profitability, and growth potential. The primary goal of the income statement is to summarize a company's operating results, as stated in the question. Therefore, the right option is "operating results."
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a corporation is tried for discriminatory hiring practices. after the judgement against it, the corporation appeals the decision. what is the purpose of considering the appeal of the trial court's decision? a.) to ensure a reasonably fair trial was provided by the trial judge b.) to try the case in front of a different jury c.) to provide the corporation with a second chance to prove its case or defense d.) to verify that the trial proceedings were not corrupt
The purpose of considering the appeal of the trial court's decision is to verify that the trial proceedings were not corrupt.
This is done by the appellate court reviewing the evidence and legal arguments from the trial court to determine if the decision was correct.
The appellate court will review the record to ensure that a reasonably fair trial was provided by the trial judge, that all relevant evidence was presented, and that the legal procedures were followed.
This process provides an opportunity for the corporation to provide a second chance to prove its case or defense, as any errors made by the trial court can be reversed.
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a human resource executive is setting up a mentoring program at her company. which action will best help the program succeed?
The best action to help a mentoring program succeed is to clearly define the goals of the program.
This should include an overview of the program’s objectives and goals, who it is intended to benefit, and the expected outcomes.
Once the objectives have been defined, the next step is to identify and recruit participants. Mentors should be chosen for their skills and experience.
Finally, the program should have a structure to ensure it runs smoothly, such as setting expectations for mentors and mentees and regularly evaluating program effectiveness.
With clear goals, participants, and structure, the mentoring program will have a strong foundation for success.
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a price ceiling is a. a maximum price set by government that sellers may charge for a good. b. a minimum price set by government that sellers must charge for a good. c. the minimum price that consumers are willing to pay for a good. d. the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
Price ceiling is A. a maximum price set by the government that sellers may charge for a good.
It is important to note that the price ceiling must be below the equilibrium price or it will have no effect. Price ceilings are typically used to protect consumers from high prices. The idea is to make sure goods remain affordable for the general public. Price ceilings also help to increase access to products and services, which can be beneficial to those in lower income brackets.
When a price ceiling is set, it creates a shortage in the market because the quantity of the good demanded by consumers is greater than the quantity supplied by the sellers. As a result, the equilibrium price (the price where the quantity demanded and supplied is equal) is higher than the price ceiling and a shortage in the market is created. This is known as an artificial shortage, since it is not due to a decrease in the supply, but rather to an artificially imposed price ceiling.
The consequences of a price ceiling can be positive or negative. On one hand, it can lower prices for consumers, making the goods or services more affordable and accessible. On the other hand, it can lead to an artificial shortage, which can result in long lines, lower quality goods, and a decrease in supply. Therefore, it is important to carefully consider the potential effects of a price ceiling before it is implemented.
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dministrative pay distribution systems describe the allocation of monetary resources to fund pay structures. question 5 options: true false
The statement "Administrative pay distribution systems describe the allocation of monetary resources to fund pay structures" is TRUE.
What is Administrative Pay Distribution Systems?Administrative pay distribution systems are intended to ensure that an organization's wage structure is equitable, competitive, and supportive of its human resource strategy.
Wage structures are defined by how work is divided into jobs and how much they are worth in terms of compensation.
An administrative pay distribution system assists in determining how wages are dispersed across the business to guarantee that salaries are reasonable and in line with job duties and responsibilities.
The development of a proper compensation distribution system is critical to attracting and keeping the best employees while keeping costs under control.
Organizations can use a variety of compensation distribution methods to establish fair pay grades and wage ranges. In addition, they must consider their ability to pay as well as the competition's compensation rates in their industry when formulating a pay structure.
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zappos and amazon focus on customer service. how do behavioral controls play a role in the customer service levels of these firms?
Zappos and Amazon are two firms that focus heavily on customer service. Behavioural controls are an important part of this, as they help to ensure that customer service levels are kept high.
Behavioural controls can take many forms, such as the implementation of processes, procedures, and guidelines that staff members must follow when dealing with customers.
Additionally, managers and supervisors are often required to carry out regular reviews and evaluations of customer service performance. These reviews help to ensure that customer service standards are being met, and any areas of improvement can be identified and addressed.
Furthermore, staff members can also be rewarded for excellent customer service, which helps to motivate them to keep customer service levels high. All of these measures play a role in helping Zappos and Amazon maintain the excellent customer service levels they are renowned for.
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a zero coupon bond with a face value of $1,000 that matures in 15 years sells today for $529. what is the yield to maturity?
The yield to maturity of the zero coupon bond with a face value of $1,000 and a maturity of 15 years is 9.36%.
To calculate the yield to maturity, we use the formula:
YTM = [(FV / PV)1/n - 1] x (1/n)
Where:
YTM = Yield to Maturity
FV = Face Value
PV = Present Value
n = Number of Years to Maturity
So, in this case:
YTM = [(1,000 / 529)1/15 - 1] x (1/15) = 9.36%
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jamal wants to save 54000 for a odwn payment on a home. how much will he need to invest in an account with 8.2 apr compounding dialy in order to reach his goal in 5y ears
Jamal needs to invest $38,820.11 in an account with 8.2% APR compounding daily to reach his goal of $54,000 in five years.
To calculate the amount needed, use the compound interest formula A=P(1+r/n)^nt, where A is the amount at the end of the time period, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded in a year, and t is the number of years.
Plugging in the values of 8.2% APR compounded daily, we get A=38,820.11.
This means that Jamal must invest $38,820.11 in an account with 8.2% APR compounding daily to reach his goal of $54,000 in five years.
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3.in a general sense, anyone who affects or is affected by decisions made within a firm can be called a business . a) nominee; b) stakeholder; c) analyst; d) insider.
In a general sense, anyone who affects or is affected by decisions made within a firm can be called a business stakeholder (option b).
Business stakeholders are individuals or organizations that have an interest in the success or failure of a firm. The following groups are some of the most common business stakeholders:
CustomersSuppliersEmployeesOwnersShareholdersCreditorsGovernment agenciesLocal communitiesBusiness partnershipsNon-governmental organizationsCompetitorsIn conclusion, the term "business stakeholder" refers to anyone who has a vested interest in a business's success.
Business stakeholders are crucial to the success of a business, and as a result, it is critical for businesses to consider their needs while making decisions.
Therefore, stakeholders (option b) are affected by the decisions within a firm.
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FILL IN THE BLANK. Louisa wanted to make some extra money, so she went door-to-door in her neighborhood asking people if they had any small jobs that they could hire her to perform. Louisa had no idea of whether anyone had any jobs for her, so she randomly picked the doors she knocked on. In terms of the selling process, Louisa was engaged in _____ when she knocked on a door.
In terms of the selling process, Louisa was engaged in prospecting when she knocked on a door.
What is prospecting?Prospecting is a vital part of the sales process. The process of identifying potential new customers or clients for a product or service is known as prospecting. The goal of prospecting is to create a list of people who are interested in purchasing your goods or services.
The goal of prospecting is to develop long-term relationships with clients, create trust, and eventually persuade them to purchase your product or service. Therefore, when Louisa went door-to-door asking for small jobs, she was actively searching for potential clients or customers.
In the selling process, prospecting involves identifying and contacting potential customers who might have a need for your product or service. In Louisa's case, she was looking for people who had small jobs that they could hire her to perform. By randomly knocking on doors in her neighborhood, she was attempting to find potential clients who needed her help.
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each partner, in the absence of an agreement to the contrary, has which of the following rights? group of answer choices the right to have an equal part in the business of the firm. both b. and c. the right to a share of partnershi
In the absence of an agreement to the contrary, each partner has the right to have an equal part in the business of the firm.
What is a partnership agreement?A partnership agreement is a legally binding document that establishes the roles and responsibilities of each partner in a business partnership. A partnership agreement is a legal document that specifies the rights and responsibilities of each partner in a business partnership.
In the absence of a written agreement, partners in a business partnership have a right to an equal share of the firm's business as well as a share of partnership profits and losses.
A business partnership's agreement specifies the manner in which partners in a business partnership will conduct their business affairs.
The partnership agreement, for example, may define the proportion of each partner's contribution, as well as each partner's share of profits and losses. Additionally, the agreement can include a mechanism for resolving disputes among partners.
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