Under the Second Wave of the Partial Shield Statute, a Partner

question 28

Multiple Choice

Under the second wave of the partial shield statute, a partner of a limited liability partnership (LLP) would be unlimitedly liable for:

• A) breaches of ordinary contract obligation.
• B) negligent acts.
• C) wrongful acts by employees.
• D) wrongful acts of agents.
• E) malpractice and misconduct of employees.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales volume, remaining constant regardless of business activities.

Planning Budget

An initial budget created using the assumptions of a particular level of activity to guide a company's financial decisions.

Net Operating Income

A financial metric that measures a company's profitability from its core business operations, excluding the effects of financing and taxes.

Selling

The process of promoting and transferring goods or services to customers in exchange for money.