Paul Invests $50 000 in a Partnership with His Sister

question 216

Multiple Choice

Paul invests $50 000 in a partnership with his sister to operate a computer sales outlet. Paul is not involved in the operation of the store and has limited liability through the written partnership agreement. What kind of partner is Paul?

• A) Secret
• B) Ostensible
• C) Limited
• D) Dormant
• E) General

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Definitions:

Inventory Accounts

Accounts used to track the quantity and value of goods a company has in stock, including raw materials, work-in-progress, and finished goods.

Controller

A financial manager responsible for the accounting operations of a company, including financial report generation and data integrity.

Raw Materials Inventory

The total cost of all the raw materials that are in stock and available for use in the production process at a given time.