Which Form of Business Entity Was Created Primarily to Professionals

question 5

Multiple Choice

Which form of business entity was created primarily to professionals from malpractice liability generated by other owners in the firm?

• A) the limited partnership
• B) the limited liability partnership
• C) the limited liability company
• D) the general partnership

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Definitions:

Inventory Turnover

A measure of how quickly a company sells and replaces its inventory over a certain period, indicating the efficiency of inventory management.

Net Income

Net income represents the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the actual profit made during a specified period.

Total Assets

The sum of all resources owned by a company, valued in monetary terms, which includes tangible and intangible items.

Owner's Equity

The amount of assets owned by a business's owner after all liabilities have been deducted.