Which of the Following Is Correct with Respect to Partnership

question 122

Multiple Choice

Which of the following is correct with respect to partnership?

• A) Partnership is a separate legal entity.
• B) A partnership can be made up of only limited partners.
• C) Partners are not agents for each other.
• D) General partners have unlimited liability.
• E) General partners have limited liability.

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Definitions:

Level of Output

The total quantity of goods or services produced by a firm, industry, or economy within a specific period.

Average Total Cost

The total cost of production divided by the total quantity produced.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a product, highlighting the concept of incremental spending in production.

Average Total Cost

The per unit cost of production, calculated by dividing the total costs by the quantity of output produced.