Fred and Carole Were Trying to Create a List of the Pros

question 92

Multiple Choice

Fred and Carole were trying to create a list of the pros and cons of sole proprietorship,partnership,and corporation to determine the best structure for carrying on business.Which of the following is true with regard to being a general partner?

• A)Each partner is an agent for every other partner and for the firm itself,so a partner may be liable for the contracts made by an incompetent partner.
• B)Every general partner faces limited liability for the debts of the partnership.
• C)A partner is liable for only the amount that he or she invested in the partnership firm.
• D)Retiring from a partnership by giving notice to the partners frees a partner from the liabilities he or she faced while being a partner of the firm.
• E)A partner is liable to pay from his or her personal assets only when the partner has committed a criminal act.

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Definitions:

Production Constraint

Any factor that limits the output of a production process, such as limited machine capacity or shortages of materials or labor.

Constrained Resource

A limited resource that restricts an organization's ability to produce goods or services, affecting throughput and operational efficiency.

Fixed Cost

Expenses that do not change in total over a wide range of activity levels or over the short term, such as rent or salaries.

Special Order

is an order that is outside of a company’s normal production schedule and often requires unique specifications or pricing.