Which Form of Organization Provides Limited Liability for the Firm

question 55

Multiple Choice

Which form of organization provides limited liability for the firm but yet allows the professionals working within that firm to be sued personally?

• A) Limited liability partnership
• B) Limited liability company
• C) Sole proprietorship
• D) Professional corporation

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Definitions:

Foreign Exchange Gains

Profits resulting from the increase in value of a currency against another in the foreign exchange market.

Self-Sufficient Subsidiary

A subsidiary that operates independently from its parent company, having its own financial systems, resources, and capabilities to sustain its operations.

Total Assets

The sum of all assets owned by an entity, representing the total resources at its disposal for operations or investments.

Current-Rate Method

An accounting method used to convert the financial statements of a foreign subsidiary into the parent company’s reporting currency by applying the current exchange rate.