Which of the Following Firms Has Unlimited Liability

question 191

Multiple Choice

Which of the following firms has unlimited liability?

• A) only proprietorships
• B) only partnerships
• C) only corporations
• D) both proprietorships and partnerships

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Definitions:

Standard Cost Formula

A calculated estimate of the expected cost of production, including direct labor, materials, and overhead, used for budgeting and variance analysis.

Level Of Activity

Refers to the volume of work performed or capacity utilized within a specific period.

Fixed Manufacturing Overhead

The costs that do not change with the level of production, including costs such as rent, insurance, and salaries for management.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of its production cost.