A Business Partner Whose Potential Financial Loss in the Partnership

question 41

Multiple Choice

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

• A)generally partner.
• B)sole proprietor.
• C)limited partner.
• D)corporate shareholder.
• E)zero partner.

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Definitions:

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of the amount of time a machine is operated for the purpose of producing goods.

Batches

Distinct groups of items or quantities produced or processed at the same time.

Overhead Cost

All costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead costs relate to business operations and are not directly tied to a specific product or activity.