Which of the Following Was a Result of the Principle

question 61

Multiple Choice

Which of the following was a result of the principle of limited liability gaining acceptance in the 1840s? 

• A) Lower number of businessmen investing money in ventures 
• B) Higher risk for investors in business ventures 
• C) Lower risk of losing shares in a corporation for businessmen 
• D) Accumulation of large amounts of capital to finance the Industrial Revolution

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, valued at the standard cost.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks against actual production costs.

Gallons

A unit of volume measurement used primarily in the United States, equivalent to 3.785 liters.