Which of the Following Would Most Likely Be a Requirement

question 31

Multiple Choice

Which of the following would most likely be a requirement of provincial legislation with respect to a limited liability partnership?

• A) liability insurance to compensate victims for loss
• B) the use of "limited partnership" or "LP" in the firm name
• C) a business licence in the partnership name
• D) access to partners' personal assets to satisfy claims

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the return from an investment relative to its cost.

Performance Measure

Metrics or indicators used to evaluate, compare, and track the efficiency, effectiveness, and progress of an organization or its components.

Investment Turnover

A measure of a company's efficiency in generating sales from its assets, calculated as sales divided by the average invested assets.

Operating Income

A company's profit after subtracting operating expenses, such as wages and cost of goods sold, but before deducting interest and taxes.