Alice Is Co-Owner of a Company Where She Has Unlimited

question 44

Multiple Choice

Alice is co-owner of a company where she has unlimited liability. However, there are three additional co-owners within the same company that have limited liability. This company can best be described as a/an ______.

• A) unlimited partnership
• B) limited partnership
• C) uniform partnership
• D) limited-liability company

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Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production costs.

Variable Costs

Costs that vary directly with the level of production or output.

Financial Performance

A measure of how well a company can use assets to generate earnings, often evaluated through financial statements and ratios.