Which of the Following Is a Distinguishing Feature of a Limited

question 30

Multiple Choice

Which of the following is a distinguishing feature of a limited partnership?

• A) The liability of each partner is limited to their capital contributions.
• B) The liability of some partners is limited to their capital contributions.
• C) Limited partners may participate in the day-to-day management of the firm.
• D) Limited partnerships are only available to professionals.

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Definitions:

Consolidated Financial Statements

Consolidated financial statements present the financial position and results of operations for a parent company and its subsidiaries as if they were a single economic entity.

Elimination

In accounting, refers to the removal of intercompany transactions to avoid double counting when consolidating financial statements.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its tangible and identifiable intangible assets.

Fair Value

The price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date.