A Limited Liability Partnership Form of Organization

question 46

Multiple Choice

A limited liability partnership form of organization:

• A)Decreases liability of all partners of a CPA firm.
• B)Has similar liability requirements to that of a professional corporation.
• C)Eliminates personal liability for some,but not all,partners.
• D)Eliminates personal liability for all partners.

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Definitions:

Expected Returns

The anticipated return on an investment, based on historical averages or statistical analyses.

Variances

Statistical measures that represent the dispersion of data points in a data set relative to its mean, indicating how spread out the data is.

Well-Diversified Portfolio

A portfolio that contains a wide variety of investments across different asset classes and sectors to minimize risk.

Single Index Model

A simplified financial model that describes the return of a security as a linear function of the return of a market index, plus some idiosyncratic noise.