Question

In: Operations Management

Who carries most of the financial risk in a partnership? Group of answer choices General partner...

Who carries most of the financial risk in a partnership?

Group of answer choices

General partner

Stockholders

Limited partner

None of the above

Solutions

Expert Solution

General partner

The general partner is responsible for the actions of the business and they can be personally held liable for any debt or obligations as well


Related Solutions

Ms. Kim is a general partner who holds a 50% interest in the Mustang Partnership. This...
Ms. Kim is a general partner who holds a 50% interest in the Mustang Partnership. This year, Mustang earned an ordinary business income of $200,000 before accounting for any payments to partners. Mustang also received $8,000 in qualified dividend income and $3,000 of municipal bond interest income. During the year, Mustang paid Ms. Kim a $60,000 guaranteed payment for services to the partnership plus an additional cash distribution of $30,000(assume Mustang made no payments to any other partner). Ms. Kim’s...
Systematic risk of financial assets: Group of answer choices can be effectively eliminated by portfolio diversification....
Systematic risk of financial assets: Group of answer choices can be effectively eliminated by portfolio diversification. is not priced risk is measured by beta. is measured by standard deviation. is related to the industry specific factors.
Ms. Kim is a general partner who holds a 50% interest in Mustang Partnership. This year,...
Ms. Kim is a general partner who holds a 50% interest in Mustang Partnership. This year, Mustang earned ordinary business income of $200,000 before accounting for any payments to partners. Mustang also received $8,000 in qualified dividend income and $3,000 of municipal bond interest income. During the year, Mustang paid Ms. Kim a $60,000 guaranteed payment for services to the partnership plus an additional cash distribution of $30,000 (assume Mustang made no payments to any other partner). Ms. Kim’s ordinary...
What vessel carries blood from the liver to the heart? Group of answer choices Aorta Hepatic...
What vessel carries blood from the liver to the heart? Group of answer choices Aorta Hepatic vein Thoracic duct Hepatic portal vein
Which of the following is a correct relationship? Group of answer choices A. Control risk and...
Which of the following is a correct relationship? Group of answer choices A. Control risk and planned detection risk have a direct relationship. B. Acceptable audit risk and planned detection risk have an inverse relationship. C. Planned detection risk and inherent risk have an inverse relationship. D. All of the above are correct relationships.
Which of the following is an example of firm-specific risk? Group of answer choices A.) An...
Which of the following is an example of firm-specific risk? Group of answer choices A.) An auto company recalls its vehicles due to the fuel emission problem. B.) The financial crisis in U.S. causes security prices around the globe to fall. C.) Federal Reserve increases the short-term interest rate by 0.25%. The corporate tax rate is lowered from 35% to 20% by the government’s new tax bill. D.) 2.) he weighted average cost of capital for a firm: Group of...
The risk of a completely diversified portfolio ______________. Group of answer choices can be regarded as...
The risk of a completely diversified portfolio ______________. Group of answer choices can be regarded as the variance of the market portfolio has only unsystematic risk and no systematic risk has only systematic risk and no unsystematic risk can be regarded as the standard deviation of the market portfolio
Which of the following accurately describes a general partner in a partnership?
Which of the following accurately describes a general partner in a partnership?A- A partner who is personaly liable for partnership debts only up to the amount of money or other property that the partner contributed to the partnership.B- A partner who is personally liable for the partnership's nonrecourse loans.C- A partner who is personally liable for partnership debts.D- A partner who adheres to generally accepted accounting
Which of the following accurately describes a limited partner in a partnership? A partner who is...
Which of the following accurately describes a limited partner in a partnership? A partner who is not personally liable for partnership debts beyond the amount of money or other property that the partner contributed to the partnership. A partner who is personally liable for partnership debts. A partner who can act on behalf of the business without the knowledge or permission of the other partners. A partner who participates in the daily running of the business or in making business...
Which of the following circumstances illustrates the aggregate theory of partnership law? Group of answer choices...
Which of the following circumstances illustrates the aggregate theory of partnership law? Group of answer choices A lawsuit being required to name the partners individually as defendants The partnership going through a dissociation upon the death of a partner The partnership filing for bankruptcy The partnership being allowed to hold property in its own name None of the above circumstances illustrates the aggregate theory.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT