In a Limited Liability Partnership,each Partner's Risk of Losing Personal

question 62

Multiple Choice

In a limited liability partnership,each partner's risk of losing personal assets is:

• A)nonexistent.
• B)determined entirely by the maximum loss provision established by the articles of co-partnership.
• C)limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision.
• D)limited to the amount that partner invested in the company.

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Definitions:

Net Present Value

Net present value (NPV) is the calculation used to find today’s value of a future stream of payments and earnings, accounting for the time value of money.

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.

Industrial Furnace

A device used in manufacturing to provide high temperatures for processes such as melting metals or chemical reactions.

Real Option

The right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a project.