Use the Following to Answer Questions

question 252

Multiple Choice

Use the following to answer questions:
Figure: Market Changes
-(Figure: Market Changes) Refer to the figures. If these figures represent the market for new cars, which figure shows the effect of an economic recession?

• A) Figure A
• B) Figure B
• C) Figure C
• D) Figure D

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Definitions:

General Partner

A partner who takes an active part in running a partnership and has unlimited liability for the firm’s debts.

Liability

The legal responsibility to settle debts or obligations, which may arise from contracts, torts, or statutory duties.

Management Duties

The responsibilities and tasks assigned to the management of an organization, including decision-making, planning, staffing, directing, and controlling.

Limited Partners

Individuals in a partnership who invest money but are not involved in day-to-day management, and whose liability is limited to the amount of their investment.