In a Limited Partnership,general Partners

question 19

Multiple Choice

In a limited partnership,general partners:

• A)have the right to manage the business.
• B)are not liable for the firm's debts.
• C)are nonparticipating investors.
• D)cannot transfer their ownership interest.

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Variable Costing

A financial recording method that counts only the variable expenses related to production (direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.

Variable Costing

A financial recording approach that incorporates only variable manufacturing expenses, such as raw materials, direct workforce, and fluctuating production overheads, into the costs of goods produced.

Net Operating Income

A financial term representing the profit made from a company’s operations, after subtracting operating expenses from operating income.