Which of the Following Is a Characteristic of a Limited

question 2

Multiple Choice

Which of the following is a characteristic of a limited partnership?

• A) It allows one or more partners to have limited liability.
• B) It requires one or more of the partners to be a general partner to whom the privilege of limited liability does not apply.
• C) It prohibits the limited partners from participating in the management of the partnership.
• D) All of the above.

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Definitions:

Profit Center

A profit center is a segment or division within a company that is responsible for generating its own revenue and profit, evaluated separately for assessing its performance.

Decentralized

A structure in a business or organization where decision-making authority is distributed among various levels or locations rather than concentrated at the top.

Manageable Units

Components or segments within an organization that can be independently planned for, measured, and controlled.

Cost Center

A department or unit within an organization that does not directly add to profit but incurs costs, such as the HR department or IT support.