In the context of limited partnerships, which of the following statements is true of limited partners?
A. Their ultimate authority in the business often compels them to perform tasks or make decisions in areas where they lack expertise.
B. They assume unlimited personal liability for debts incurred by the company.
C. They are not only liable for their own mistakes but also for that of their partners.
D. Their personal wealth is not at risk as long as they do not actively participate in managing the company.
Answer: D
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Consider the following production function Y = A×Ka×L1?a. ? If a = 0.4, and over the past year output grew 4 percent, total factor productivity (TFP) grew 2.6 percent, and labor grew 1 percent, what was the growth rate of capital?
A. 4 percent B. 3 percent C. 2 percent D. 1 percent
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What will be an ideal response?
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What will be an ideal response?