Andre Invested $100,000 in a Partnership with Erik and Louis

question 42

Multiple Choice

Andre invested $100,000 in a partnership with Erik and Louis. Andre's contract with the partnership states he will receive a portion of partnership profits, but he will be liable for partnership's debts only to the extent of the $100,000 he invested. Andre is:

• A) a subpartner.
• B) a dormant partner.
• C) a limited partner.
• D) an aggregate partner.

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Definitions:

Direct Labor-Hours

The total time workers spend producing a product or service, directly involved in the manufacturing or production process.

Variable Overhead

Costs that fluctuate with the level of production output, such as utilities for a manufacturing plant, which increase as production increases.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services and are a major component of total manufacturing costs.

Direct Labor-Hours

A measure of the time workers spend directly manufacturing a product, used in calculating labor costs and efficiency.