In a General Partnership,which of the Following Is True of Limited

question 45

Multiple Choice

In a general partnership,which of the following is true of limited partners?

• A)Limited partners take an active part in the management of the firm.
• B)A limited partner's nonpartnership property can be used to satisfy any debts owed by the firm.
• C)Limited partners are nonparticipating investors.
• D)Limited partners have unlimited liability for the firm's debts.

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Definitions:

Net Income

The ultimate profit of a company calculated by removing all operational costs, taxes, and expenses from its gross income.

Financial Accounting Standards

Rules and guidelines developed by authoritative entities to govern how financial statements should be prepared and presented.

IASB

The International Accounting Standards Board, an independent body that develops and approves International Financial Reporting Standards (IFRS).

AICPA

The American Institute of Certified Public Accountants, a professional organization for certified public accountants in the United States.