Which of the Following Forms of Organisation Blends Elements of Partnerships

question 53

Multiple Choice

Which of the following forms of organisation blends elements of partnerships and corporations?

• A)managing partnerships
• B)sole proprietorships
• C)limited liability companies
• D)general partnerships

---

Definitions:

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or volume of production.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, reflecting the proportion of fixed costs to variable costs.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, which can also increase the risk of loss.

Fixed Costs

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