A partnership who has unlimited personal liability and takes full responsibility for managing the business. The __________ shows your Revenues, Expenses, and Profit for a particula... A partnership who has unlimited personal liability and takes full responsibility for managing the business. The __________ shows your Revenues, Expenses, and Profit for a particular period. It's a snapshot of your business that shows whether or not your business is profitable at that point in time.
Understand the Problem
The question is asking about different types of partnerships and financial statements in a business context. It specifically seeks to identify which type of partnership has unlimited liability for managing a business and what type of financial document provides a snapshot of revenues, expenses, and profit.
Answer
General Partnership; Income Statement
The first blank is 'General Partnership'. The second blank is 'Income Statement'.
Answer for screen readers
The first blank is 'General Partnership'. The second blank is 'Income Statement'.
More Information
In a general partnership, all partners have unlimited liability and manage the business. The income statement reveals the profitability by showing revenues, expenses, and profit.
Tips
A common mistake is confusing the income statement with the balance sheet, which instead shows the financial position at a point in time.
Sources
- What Does Unlimited Liability Mean, and Which Businesses Have It? - investopedia.com
- Balance Sheet of a Sole Proprietorship: Understanding The Basics - profitlineusa.com
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