Which of the Following Is True About a Family Limited

question 26

Multiple Choice

Which of the following is true about a family limited partnership?

• A) The family limited partnership has the same advantages and disadvantages as a proprietorship.
• B) In a family limited partnership, the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews.
• C) The family limited partnership has fewer benefits than other limited liability partnerships.
• D) Only spouses, parents and siblings can form a family limited partnership.

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Definitions:

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.

Maturity

The expiration date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Coupon Rate

The annual interest rate paid by bond issuers on the bond's face value.