Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
• B) Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
• C) A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
• D) The limited partners in a limited partnership have voting control, while the general partner has operating control over the business.Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
• E) A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

Evaluate historical interpretations of the impact of slavery on American society.

Understand the basic principles of the market system, including self-interest, competition, and private property.

Describe the characteristics and implications of laissez-faire capitalism and command economies.

Recognize the role of division of labor and specialization in enhancing productivity and economic output.

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Definitions:

Budgets

Financial plans that forecast future income, expenditure, and resource allocation, guiding organizational decision-making.

Overhead Volume Variance

A measure used in cost accounting to analyze the difference between the budgeted and actual volume of activity, influencing the fixed manufacturing overhead.

Standard Hours

The set number of hours that are expected to be worked, often used in manufacturing to estimate labor costs.

Selling Prices

The amounts at which goods or services are sold to customers, determined by factors like cost, market demand, and competition.