Certified Public Accountant (Business Environment amd Concepts): BUSINESS-ENVIRONMENT-AND-CONCEPTS

Correct Answer: A

Choice "a" is correct. A limited partner has rights similar to those of a corporate shareholder; he must be allowed to review financial and tax information of the limited partnership. Choice "b" is incorrect. A limited partnership must have one or more general partners, whose liability is unlimited. Choice "c" is incorrect. One may be both a general and a limited partner simultaneously. Such a person has all of the rights and liabilities of both a limited partner and a general partner. Choice "d" is incorrect. A limited partner has no management authority, rather he is a passive investor, like a corporate shareholder.

Correct Answer: C

Choice "c" is correct. If firms overlook the fact that few customers care about the fact that a product is priced lower than others and care more about brand loyalty, cost leadership strategies will fail. Choices "a", "b", and "d" are incorrect, as these are all situations in which cost leadership strategies work well.

Correct Answer: C

Choice "c" is correct. II only - Average daily sales ($27,397) ?Average collection period (36.5) =

$1,000,000 Avg gross A/R

Not I - Days' sales in receivables (36.5) ?AR turnover 10 = 365 days in year.

Not III - Net sales ($10,000,000) ?Avg gross receivables ($1,000,000) = 10 AR turnover.