What Type of Business Entity Is an Organization Providing Limited

question 2

Multiple Choice

What type of business entity is an organization providing limited liability to partners without restrictions of limited partnership often used by lawyers and accountants?

• A) Limited partnership
• B) General partnership
• C) Limited liability partnership
• D) Limited liability company

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Definitions:

Administrative Expense

Expenses related to the general operations of a business, such as salaries of non-sales personnel, rent, utilities, and office supplies.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Factory Equipment

The machinery and tools used in the process of manufacturing goods, often considered as fixed assets in accounting.

Depreciation

The systematic allocation of the depreciable amount of a fixed asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.