Kristen and Her Brothers and Sisters Set Up a Design

question 269

Multiple Choice

Kristen and her brothers and sisters set up a design firm called Houses by Design LLP. Although key business functions are centralized, each sibling is a licensed architect that designs, builds, and installs residential and commercial buildings for his/her own clients. Unfortunately, a design created and installed for one of their clients resulted in water damage to the basement of the client's new home. The limited liability partnership:

• A) guarantees that none of the company's partners will lose more than the amount they invested in the company.
• B) guarantees that only those partners who were directly involved in designing and building this home face unlimited liability for claims against the firm.
• C) protects the partners from any suit by the client.
• D) will enable the firm to quickly reorganize with only minor financial losses.

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Definitions:

Bill Of Material

An exhaustive catalog of the basic materials, elements, and guidelines for assembling, producing, or mending a product or service.

External Customer

A person or organization that receives a product or service from a business but is not part of the organization providing it.

Wagner-Whitin Algorithm

A dynamic programming approach to solve the economic lot sizing problem in inventory management, aiming to minimize costs.

MRP Lot-Sizing Technique

A method used in manufacturing to determine the quantity of materials required for production, focusing on minimizing costs while meeting production schedules.