Which One of the Following Statements Is True Regarding a Partner's

question 24

Multiple Choice

Which one of the following statements is true regarding a partner's personal liability for partnership assets?

• A) LLC members can never be liable for entity debts.
• B) In a limited partnership, all partners have limited liability for partnership debts.
• C) In a limited liability partnership, a partner might be subject to liability for other partners' malpractice.
• D) In a general partnership, all partners are liable for entity debts.
• E) None of these statements is true.

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Definitions:

Break-even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor a loss.

Fixed Costs

Costs that do not change in total with changes in activity level over a relevant range, such as rents, salaries, and insurance premiums.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in zero profit or loss.

Fixed Costs

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