A Limited Partnership Differs from an Ordinary Partnership by

question 125

Multiple Choice

A limited partnership differs from an ordinary partnership by

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

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Definitions:

By-products

Secondary products that are produced incidentally in the process of manufacturing the main product, often with economic value and varying applications.

Net Realisable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Joint Costs

Costs incurred up to the split-off point in the process of producing joint products, which are not identifiable to individual products.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, contributing towards covering fixed costs and profit.