CIMA Exam CIMAPRA19-E01-1 Topic 3 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam

Question #: 72
Topic #: 3

F managesa portfolio of clients, as do his colleagues. All income that is earnedby themis pooled to cover costs and overheads and any remaining profits are splitaccording toan agreedformul

a. F and hiscolleagueshave joint and several liability in relation to the work they carryouton the organisation's behalf. Which of the organisation types listed below best describes the organisation that F works for?

ASole-trader

BCompany

CPartnership

DMultinational

Show Suggested Answer

Suggested Answer: A, B, C

by My at Jul 29, 2023, 03:11 AM

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Detra

1 days ago

But doesn't joint and several liability also apply to partnerships? So it could be a partnership or a company.

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Georgeanna

2 days ago

I agree with Timothy, because in a partnership, profits are split according to an agreed formula.

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Tabetha

5 days ago

This sounds like a partnership to me. The income is pooled and the profits are split according to an agreed formula, which is a key characteristic of a partnership.

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Timothy

10 days ago

I think the organization F works for is a partnership.

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