Which of the Following Is a Feature of Limited-Liability Partnerships

question 42

Multiple Choice

Which of the following is a feature of limited-liability partnerships?

• A)They are restricted to a limited number of partners who are liable for the business.
• B)Liability is limited to 150% of each partners investment in the business.
• C)Partner liability is unlimited but the liability of partner families is limited.
• D)Each partner is liable for his or her own actions.

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Socially Optimal

A condition or point where the social welfare, including both consumer and producer welfare, is maximized, often considered in the analysis of market efficiency and interventions.

Pure Competition

A market structure characterized by a large number of small firms, homogeneous products, and easy entry and exit, leading to price taking behavior.

Long Run

A period in which all inputs can be adjusted by firms, allowing new firms to enter or exit the industry.