A Limited Partnership Differs from an Ordinary Partnership by

question 49

Multiple Choice

A limited partnership differs from an ordinary partnership by

• A)including some partners whose liability is restricted to the amount that they invested in the firm.
• B)having a limited number of partners,each with limited liability.
• C)having limited liability of all partners.
• D)having a limited number of partners.
• E)having unlimited liability for all partners.

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Definitions:

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including materials and labor.

Schedule M-1

A form used by corporations to reconcile financial statement income with taxable income as reported on the corporation's tax return.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government.

Book Income

The income reported by a business based on the accounting rules of the firm, not necessarily reflecting the taxable income reported to the IRS.