Newt Is Considering Forms of Business Organization for Newton Design,an

question 34

Multiple Choice

Newt is considering forms of business organization for Newton Design,an ar-chitectural firm.An advantage of a limited liability partnership is that partners can avoid personal liability for

• A)their own wrongful acts.
• B)only other partners' malpractice.
• C)only partnership obligations that exceed capital contributions.
• D)only partnership obligations that fall within capital contributions.

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Definitions:

Sales Salaries Expense

The total salary and wage expenses incurred for the sales staff of a company.

Manufacturing Overhead

includes all indirect costs related to manufacturing, such as salaries of supervisors and maintenance costs, that are not directly tied to a specific product.

Job-order Costing

A costing method used by companies to assign manufacturing costs to individual products or batches, ideal for customized orders.

Overhead Cost

A rephrased definition: Expenses related to the day-to-day running of a business that are not directly linked to any specific product or service, such as administrative expenses.