Which of the Following Is True About a Family Limited

question 26

Multiple Choice

Which of the following is true about a family limited partnership?

• A) The family limited partnership has the same advantages and disadvantages as a proprietorship.
• B) In a family limited partnership, the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews.
• C) The family limited partnership has fewer benefits than other limited liability partnerships.
• D) Only spouses, parents and siblings can form a family limited partnership.

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Definitions:

Large Inventories

Holding significant amounts of stock to handle demand fluctuations, reduce reorder frequency, or ensure product availability.

Supply Chain Costs

The total expenses incurred in the operation of a supply chain, including production, storage, transportation, and distribution costs.

Tailored Postponement

A supply chain strategy that involves delaying the final stages of production or customization of a product until customer demand is better understood.

Profitability

A financial metric indicating the extent to which a company or business generates more revenue than its costs; the capability to generate profit.