Which of the Following Statements About a Limited Liability Partnership

question 7

Multiple Choice

Which of the following statements about a limited liability partnership (LLP) is true?

• A)an LLP has one or more general partners and one or more limited partners
• B)partners in an LLP are liable only for their investments in the partnership
• C)partners in an LLP are not liable for the misdeeds of another partner
• D)only the general partners in an LLP can participate in management

Understand and apply the principles of uniform distribution probability.

Interpret the relationship between standard deviation, mean, and distribution outcomes.

Apply the exponential and Poisson distributions in real-world contexts.

Distinguish between different types of probability distributions.

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Definitions:

High Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders, which is considered high relative to other companies or historical payouts.

Moral Hazard

The situation in which an entity has the incentive to take undue risks because the cost of those risks will be borne, at least in part, by others.

Firm-Specific Risk

The risk associated with an individual company, which can be reduced through diversification in investment.

Market Risk

The possibility that investors might incur losses because of elements influencing the general performance of the financial markets.