Which of the Following Is Mandatory for the Addition of a New

question 53

Multiple Choice

Which of the following is mandatory for the addition of a new limited partner to an existing limited partnership?

• A) death or retirement of a limited partner
• B) majority vote in a formal election constituting all partners
• C) written consent of all partners
• D) merger with another limited partnership

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed expenses and generate earnings.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity of a business, such as sales volume or production levels.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.