The Characteristic of a Partnership Whereby Each Partner Is Liable

question 6

Multiple Choice

The characteristic of a partnership whereby each partner is liable for partnership debts to the full extent of his or her private assets is known as:

• A) limited life.
• B) unlimited liability.
• C) limited liability.
• D) mutual agency.

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Definitions:

Capitalists

Individuals or entities that own capital goods or investments, and use these to produce goods and services for profit.

Rent

A regular payment made by tenants to landlords for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount necessary to keep a factor of production in its current use.

Proprietor's Income

Income earned by the owner of a sole proprietorship from the business's net earnings.

Wages and Profits

The income earned by workers and the revenue earned by owners or shareholders from their investment, respectively.