The Partner Who Can Lose Only What He or She

question 22

Multiple Choice

The partner who can lose only what he or she has invested in a business is the

• A) general partner.
• B) sole proprietor.
• C) manager.
• D) employee.
• E) limited partner.

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Definitions:

Net Revenue

Refers to the total amount of sales a company generates after subtracting direct returns, allowances, and discounts.

Plant and Equipment

Plant and equipment are tangible assets used in the production or supply of goods and services, such as machinery, vehicles, and buildings, necessary for business operations.

Accumulated Depreciation

Sum of all depreciation expenses allocated to a fixed asset since it first became operational.

Mortgage Payable

A liability account showing amount owed on a mortgage.