Which of the Following Is an Advantage of a Partnership

question 59

Multiple Choice

Which of the following is an advantage of a partnership?

• A) The partners have limited liability for the debts of the business.
• B) Each partner is responsible only for his or her acts.
• C) A partner can obtain bonding protection against the acts of other partners.
• D) More capital can be raised since good credit may be available.

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Definitions:

Flexible Budget Performance Report

A report that compares the actual performance and expenditures of a business against a budget that adjusts with the level of activity, helping to provide a more accurate basis for comparison and analysis.

Supplies Cost

The expense incurred to purchase supplies needed for the operation of a business.

Cost Formula

An equation used to determine the total cost of production or service delivery, factoring in fixed and variable costs.

Flexible Budget

A financial plan that modifies itself in response to variations in volume or activity intensity.