COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Includes both general partner(s) with unlimited liability and a limited partner(s) with liability restricted to the amount invested.
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The amount a business earns after subtracting all expenses incurred to generate revenues; also called profit or earnings.
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Detailed explanation-1: -General partners manage business operations actively. They also hold unlimited liability in the company. However, limited partners are more like investors-their liabilities are limited to the invested amount.
Detailed explanation-2: -Each general partner has unlimited liability for the obligations of the business. Each limited partner has liability limited to his capitol contribution to the business. Each general partner has a right to manage the business, and he is an agent of the limited partnership.
Detailed explanation-3: -In a limited partnership (LP), at least one partner has unlimited liability-the general partner(s). The other partners (limited partners) have limited liability, meaning their personal assets typically cannot be used to satisfy business debts and liabilities.
Detailed explanation-4: -A limited partnership (LP) has two types of partners: general and limited partners. The limited partners invest in the business, but they are silent business partners.
Detailed explanation-5: -Answer: In limited partnership one partner has unlimited liability and other partner have limited liability.