The Difference Between a Limited Partnership and a General Partnership

question 72

True/False

The difference between a limited partnership and a general partnership is that the limited partnership has partners who actively manage the day-to-day operations but also has passive investors.

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Definitions:

Comparative Advantage

A principle that states a country should produce goods and services at a lower opportunity cost than its trade partners.

Monetary Cost

The total amount of money that is spent in order to purchase goods or services.

Resources

Inputs or assets used in the production of goods and services, including labor, capital, and natural materials.

Absolute Advantage

The advantage in the production of a good enjoyed by one country over another when it uses fewer resources to produce that good than the other country does.