A Business Partner Whose Potential Financial Loss in the Partnership

question 41

Multiple Choice

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

• A)generally partner.
• B)sole proprietor.
• C)limited partner.
• D)corporate shareholder.
• E)zero partner.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.

Inflation Rate

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

Profits

Financial gains obtained after subtracting total expenses from total revenue, from business operations or other investments.