Which of the Following Statements Is Correct with Respect to Limited

question 150

Multiple Choice

Which of the following statements is correct with respect to limited partnerships?

• A)There can be no limited partnerships in Canada.If limited liability is desired,a corporation must be created.
• B)A limited partner can lose his status as a limited partner if he participates in the management of the business.
• C)There can only be one limited partner in any partnership,no matter how many partners are involved.
• D)A limited partner is totally protected and can lose no money.
• E)A limited partnership is created where all partners state in the partnership agreement that they will not be responsible for debts arising out of the partnership business and register as such with the government.

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Definitions:

Purely Competitive Firm

A business that operates in a market with infinite buyers and sellers, no barriers to entry, and a standard product, leaving the company as a price taker.

Unitary Elasticity

A situation in economics when a change in the price of a product leads to an equal proportionate change in the quantity demanded or supplied.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept for determining the optimal level of output for a company.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, the products are homogeneous, and there are no barriers to entry or exit.