Which of the Situations Listed Below Would Be an Example

question 46

Multiple Choice

Which of the situations listed below would be an example of a limited liability partnership?

• A)Harun and Ahmed mow lawns together, sharing equipment and expenses.They share the work equally.
• B)Xi and Fung operate a delivery business.Xi handles the pickups and deliveries only, while Fung handles only the financial and accounting tasks.
• C)Jordan and Chris have a landscaping business, with unequal involvement.Jordan works in the business full-time while Chris is involved half-time.
• D)Sara, Morgan, and Sabina started an accounting practice.Sara and Morgan work actively as accountants.Sabina's involvement is as an investor in the firm only.

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Definitions:

Returns To Scale

The change in output as all inputs are increased proportionally in the production process.

Inputs

The resources such as labor, materials, and capital that are used in the production process to create goods and services.

Returns To Scale

The rate at which output increases in response to proportional increases in all inputs or factors of production.

Production Function

An equation that describes the maximum amount of output that can be obtained from a given number of inputs.