Which of the Following People May Not Manage the Operations

question 84

Multiple Choice

Which of the following people may not manage the operations of a firm in which they are part or full owners?

• A) stockholders in S corporations
• B) stockholders in C corporations
• C) limited partners in a limited partnership
• D) general partners in a limited partnership

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Definitions:

Tax Purposes

The rationale or basis for certain financial decisions or calculations made in compliance with tax laws.

Net Present Value (NPV)

A profitability measure for an investment that involves deducting the present value of cash expenditures from the present value of cash receipts throughout a certain timeframe.

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.