In Which of the Following,if Any,may Investors Share in Profits

question 43

Multiple Choice

In which of the following,if any,may investors share in profits but not in management responsibilities while avoiding personal liability?

• A) Limited partnership
• B) General partnership
• C) Limited liability partnership
• D) Limited liability company
• E) There is no such entity

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Definitions:

Tax Firm

is a company that specializes in offering tax services, including tax preparation, consultation, and filing for individuals and organizations.

Cost Center

A department or a section of a business that incurs costs but does not directly generate revenues.

Generates Revenues

The process by which a company engages in activities to bring in income from its business operations.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxes, and interest payments.