Although Lew Banfilter,now a Young Attorney Is Impressed with AutoMotion

question 336

Multiple Choice

Although Lew Banfilter,now a young attorney is impressed with AutoMotion and believes it could be a place to invest money,he informed Jenna that his professional position at a law firm prevents him from taking an active role in the business.He is also concerned about accepting more risk since he has a young family.He mentioned a preference for unlimited liability.If Lew joined Jenna and Al,the three might consider forming an) :

• A)Limited partnership.
• B)General partnership.
• C)Sole proprietorship.
• D)Master Limited Partnership.

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Definitions:

Straight-Line Depreciation

This method of depreciation spreads the cost evenly across the useful life of a fixed asset, resulting in consistent annual charges.

Variable Cost

Financial charges that are tied to the extent of production levels.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

Upper Bound

The highest value that a mathematical function, statistical operation, or range of variables can reach under specific conditions.