A Limited Partner Who Takes an Active Part in Managing

question 41

Multiple Choice

A limited partner who takes an active part in managing a limited partnership ________.

• A) will lose the right to receive profit distributions as a limited partner
• B) will be entitled to reasonable compensation for the value of the managerial services provided
• C) will be treated as a general partner and is liable only to parties who reasonably believe that he or she is a general partner
• D) will be treated as a general partner and liable to all parties with whom he or she transacts business affairs

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Definitions:

Free-Trade Theories

Economic theories advocating for the elimination of barriers to the exchange of goods and services between nations, to encourage trade and economic growth.

Mercantilism

A trade theory which suggests that trade generates wealth for a country with a trade surplus, with emphasis on colonization and military conquest.

Interventionist Trade Theory

A theory suggesting that government intervention in international trade through policies and regulations is necessary to correct market failures and protect domestic industries.

Trade Surplus

Occurs when a country's exports exceed its imports, indicating a positive balance of trade.