Which of the Following Has a Perpetual Existence So Long

question 40

Multiple Choice

Which of the following has a perpetual existence so long as the number of shareholders is limited?

• A) Limited partnership
• B) Partnership
• C) Limited liability company
• D) Sole proprietorship
• E) S corporation

---

Definitions:

Equivalent Units of Production

A conversion of partially completed units into a number of fully completed units during a period, used in process costing systems.

Costs Per Equivalent Unit

A calculation used in process costing that determines the cost of a single completed unit, considering work done on partial units.

Weighted-Average Method

A costing method used in manufacturing and accounting that averages the cost of inventory by taking the total cost of goods available for sale and dividing it by the total number of goods available.

Equivalent Units of Production

An accounting term used to denote the amount of finished goods produced by a company in a given period, after adjusting for work-in-progress inventory at the beginning and end of that period.