The term 'Stock of Capital 'means?

amount of equipment plant and inventory existing at a time

amount of money necessary to start a business

total amount receivable by all factors of production

amount of equipment plant and inventory existing at a time

total amount available for economic development

JAMB UTME - Economics - 1991 | Green Bridge CBT

Pregunta 1 Informe

The ordinary partner in a partnership?

takes no active in the management of the business

has limited liability in case of business failure

has unlimited liability in case of business failure

cannot be sued personally on matters relating to the business

Detalles de la respuesta

The ordinary partner in a partnership has unlimited liability in case of business failure. A partnership is a business owned and operated by two or more people. In a partnership, each partner contributes to the business and shares in the profits and losses. There are different types of partners in a partnership, including ordinary partners and limited partners. An ordinary partner, also known as a general partner, is actively involved in the management of the business. They share in the profits and losses of the business, and they also have unlimited liability for the debts and obligations of the partnership. This means that if the business fails, the ordinary partner's personal assets may be used to pay off the debts and obligations of the partnership. In contrast, a limited partner is not actively involved in the management of the business and has limited liability. Limited partners are only liable for the debts and obligations of the partnership up to the amount of their investment in the business. Therefore, the ordinary partner in a partnership has unlimited liability in case of business failure, and this is one of the risks associated with being an active participant in the management of a partnership.






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