What Is the Major Way in Which the Roles and Obligations

question 52

Multiple Choice

What is the major way in which the roles and obligations of the owners of a corporation differ from the roles and obligations of limited partners in a limited partnership?

• A)There is no separation between the company and its owners in a corporation
• B)The owners of a corporation can withdraw from the company without the company being dissolved.
• C)The owners of a corporation can take an active role in running the company.
• D)The owners of a corporation have personal obligation for debts incurred by the company.

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Definitions:

Intermediate Product

Goods that are used in the production process to make other goods, not final products themselves but inputs into the production of final products.

Functional Lines

The divisions within an organization based on functions or roles, such as marketing, finance, and human resources.

Functional Expertise

Specialized knowledge or proficiency in a particular area or department of a business, contributing to its success and efficiency.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a lower cost per unit as output increases.