Which One of the Following Best Describes the Primary Advantage

question 33

Multiple Choice

Which one of the following best describes the primary advantage of being a limited partner rather than a general partner?

• A)No potential financial loss
• B)Entitlement to a larger portion of the partnership's income
• C)Liability for firm debts limited to the capital invested
• D)Greater management responsibility
• E)Ability to manage the day-to-day affairs of the business

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Manufacturing

The process of converting raw materials into finished products through various methods such as assembly, machining, or chemical processing.

Raw Materials Used

The total cost of all raw materials that are consumed in the production process during a specific period.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.