In a Limited Partnership, the Liability of a General Partner

question 57

True/False

In a limited partnership, the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, contributing towards covering fixed costs and earning profit.

Break Even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a loss nor a profit.

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the sales price per unit minus variable cost per unit.

Fixed Costs

Costs that do not vary with the volume of output, such as rent, salaries, and insurance.