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A General Partner Has Unlimited Liability for the Debts of the Partnership

question 116

True/False

A general partner has unlimited liability for the debts of the partnership only if he or she personally approved the decisions that resulted in those debts.


Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a firm's assets that is financed by stockholder's equity.

Profit Margin

A financial ratio that shows the percentage of revenue that remains as profit after all expenses have been paid, including costs, taxes, and interest.

Return On Assets

A performance metric that measures the efficiency of a company in generating profit from its assets.

Return On Equity

Return on equity (ROE) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

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