Christin and Paola Operate a Business in Which Both Have

question 45

Multiple Choice

Christin and Paola operate a business in which both have contributed $50,000 to the business's capitalization.Christin makes all business decisions,and Paola made Christin sign a partnership agreement saying that Paola is liable only for partnership debts up to $50,000.

• A) Both are general partners.
• B) Christin is a general partner, and Paola is a limited partner.
• C) Paola is a general partner, and Christin is a limited partner.
• D) Both are limited partners.

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Definitions:

Fixed Supply

A situation where the quantity of a good available is constant and does not change in response to price changes.

One-Of-A-Kind

Unique, without any identical counterpart.

Pure Rent

Payment to a factor of production (land, specifically) in excess of what is needed to keep it in its current use.

Fixed Supply

A situation where the quantity of a good, service, or resource is limited and cannot be changed in the short run, often leading to inelastic supply.