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:

Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Payback

A capital budgeting method that calculates the period of time required for the return on an investment to repay the original investment cost.

Cash Flow

Cash Flow is the total amount of money being transferred into and out of a business, especially as affecting liquidity. It is often considered in terms of net cash flow, which is income minus expenses.

Project

A temporary endeavor designed to produce a unique product, service, or result with specific objectives.