What Is an Important Aspect of a Limited Liability Partnership

question 1515

Multiple Choice

What is an important aspect of a limited liability partnership?

• A) All partners have unlimited liability.
• B) All partners have limited liability regarding all partnership activities.
• C) A partner has unlimited liability arising from his or her own acts of negligence or misconduct or similar acts of any person under his or her direct supervision, but does not have unlimited liability in other matters.
• D) It is the same as a limited partnership where the general partner has unlimited liability.

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Definitions:

Equivalent Units

Equivalent units refer to a conversion measure used in cost accounting to express the amount of work done by manufacturers on units that are only partially completed at the end of an accounting period.

Process Costing System

An accounting methodology used in manufacturing, where costs are assigned to processes or departments and averaged over the units produced, suitable for homogeneous products.

Lumber Mill

A facility where logs are cut, planed, and processed into lumber and other wood products for construction and manufacturing.

Process Cost System

An accounting method used to track costs associated with producing homogenous products in continuous processes.