It Is Possible to Limit the Liability Faced by Some

question 78

Multiple Choice

It is possible to limit the liability faced by some of the partners in a partnership form of business by establishing a _____. 

• A)limited liability partnership (LLP)
• B)general partnership
• C)Proprietorship
• D)concentrated partnership
• E)limited accumulation partnership

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law relating to business and commerce across states.

Commercial Paper

Short-term, unsecured promissory notes issued by companies to finance their operations, often with maturities of less than 270 days.

Sum Certain

A specific, fixed amount of money that is clear and unambiguous in a legal agreement or financial transaction.

Shares of Stock

Units of ownership in a corporation, representing a portion of the corporation's capital.