Which of the following is true of a partnership?
A)It is the most expensive form of direct investment.
B)It is a formal, long-term agreement.
C)It is the most basic level of global trade.
D)It is otherwise known as domestic franchising.

Question

Quizplus · Accepted Answer

A partnership is a formal, long-term agreement between two or more parties to jointly own and operate a business. It is not the most expensive form of direct investment, as options such as joint ventures and wholly-owned subsidiaries can be more costly. It is also not the most basic level of global trade, as there are various forms of import/export and licensing that are simpler. It is not the same as domestic franchising, although both involve a contractual relationship between two businesses.

Which of the Following Is True of a Partnership