In a Limited Partnership

question 65

Multiple Choice

In a limited partnership:

• A)the partners can operate the business only for limited time period.
• B)the profits earned by the owners are limited by government regulations.
• C)all the partners have limited liability.
• D)at least one partner has unlimited liability.
• E)the partners are free from any liability for the debts of the business.

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Marginal Costs

The increase in cost due to the production of one further unit of a product or service.

Total Cost Function

An equation that shows the overall cost incurred by a firm in the production process, including both fixed and variable costs, as a function of the quantity of output produced.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.