All partners have limited liability in_________________?
Correct answer: B. Limited liability partnership
- A. Unlimited liability partnership
- B. Limited liability partnership
- C. Controlled partnership
- D. Uncontrolled partnership
Explanation
In a limited liability partnership, each partner's personal liability for the firm's debts is generally limited, subject to exceptions such as personal wrongdoing. An unlimited-liability partnership exposes partners to broader personal liability.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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