Which of the Following Partnerships Is Distinguishable from Other Forms

question 8

Multiple Choice

Which of the following partnerships is distinguishable from other forms of partnership because the partners' liability for professional malpractice is limited to the partnership?

• A) General partnership
• B) Limited partnership
• C) Professional partnership
• D) Limited liability partnership
• E) Loss limiting partnership

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Definitions:

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is often deductible for the borrower for tax purposes.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.