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Laura Is an Investor and a Limited Partner in a Limited

question 78

Multiple Choice

Laura is an investor and a limited partner in a limited partnership.Two years after she becomes a limited partner,Laura believes that the general partners are not doing a very good job of managing the affairs of the limited partnership,and she accordingly participates in its management.While she was managing the business,a bank loans $1 million to the limited partnership,believing that Laura is a general partner.If the limited partnership defaults on the $1 million loan,which of the following will be true?


Definitions:

Explicit Cost

Direct, out-of-pocket payments for resources employed in the production of goods or services.

Marginal Cost

The additional cost incurred by producing and selling one more unit.

Fixed-Cost Fallacy

Consideration of costs that do not vary with the consequences of your decision (also known as the sunk-cost fallacy).

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life, representing the decline in value due to wear and tear, age, or obsolescence.

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