Which of the Following Explains the Difference Between Limited Partnership

question 37

Multiple Choice

Which of the following explains the difference between limited partnership and general partnership?

• A) In limited partnerships,all partners are equally liable to the firm's debt unlike general partnerships.
• B) In limited partnerships,partners incur single taxation on earnings unlike general partnerships.
• C) In general partnerships,whenever the mix of partners is changed,that partnership is dissolved unlike limited partnerships.
• D) In general partnerships,no government permission is required for the setup and maintenance of business unlike limited partnerships.

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Definitions:

Labor Cost

Labor cost refers to the total expenditure incurred by an employer to compensate its employees, including wages, benefits, and taxes.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period, indicating its overall liquidity.

Working Capital

The difference between a company's current assets and its current liabilities, representing the short-term financial health and operational efficiency of the business.

Salvage Value

The estimated resale value of an asset at the end of its useful life.