Gerald and Tanji Are General Partners in a Partnership with Mafasa

question 32

Multiple Choice

Gerald and Tanji are general partners in a partnership with Mafasa and Rolf,who are also partners but with narrowly defined rights.Which of the following accurately reflects the disadvantage Mafasa and Rolf share?

• A) Their losses as limited partners are restricted to their capital investments.
• B) What constitutes partaking in management is difficult to define.
• C) Participation in management activities will risk their unlimited liability status.
• D) Public notification of their identify and amount of capital contribution is required.

---

Definitions:

Mark-Up Percentage

A financial ratio indicating the percentage by which a product's selling price exceeds its cost, used to determine selling prices.

Time And Material Pricing

A pricing method where a service provider charges based on the labor time involved and the cost of materials used.

Labour Used

Refers to the total amount of work done or number of hours worked by employees in a specific period.

Materials Used

The raw inputs consumed in the production of goods.