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Consider a deer that runs from point A to point B. The distance the deer runs can be greater than
the magnitude of its displacement, but the magnitude of the displacement can never be greater
than the distance it runs.
Income and Losses
A financial term encompassing the total earnings (income) and deductions (losses) affecting the net profitability of a business over a specific period.
Capital Balances
The amount of money that each partner has invested in a business, which can change over time with profits and losses.
Limited Liability Company
A business framework that combines sole proprietorship or partnership tax benefits with the limited liability protection typical of a corporation.
Limited Liability
A legal structure that limits an owner's loss to the amount invested, protecting personal assets from business debts.
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