A General Partner

question 14

Multiple Choice

A general partner:

• A)cannot lose more than the amount of his/her equity investment.
• B)has less legal liability than a limited partner.
• C)faces double taxation whereas a limited partner does not.
• D)has more management responsibility than a limited partner.
• E)is the term applied only to corporations which invest in partnerships.

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Definitions:

Production Possibilities Frontier

A curve that illustrates the maximum feasible amount of two goods that can be produced with given resources and technology.

Opportunity Cost

The financial setback of forgoing the next highly regarded alternative when determining a course of action.

Technological Advance

Improvements and innovations in technology that increase productivity, efficiency, and economic output.

Machine-making Industry

A sector of the economy focused on the manufacturing and maintenance of machines and mechanical equipment.