There Are Two General Partners,each of Whom Contributes $5,000 in Capital

question 20

Multiple Choice

There are two general partners,each of whom contributes $5,000 in capital to a limited partnership.There are two limited partners,each of whom contributes $20,000.The total amount of capital contributed is $50,000.The limited partnership agreement does not stipulate how profits and losses are to be allocated.Assume that the limited partnership makes $300,000 in profits.Under the RULPA,how much would each partner receive?

• A) All partners would receive $75,000,regardless of whether he/she is a general or limited partner.
• B) Each general partner would receive $50,000,and each limited partner would receive $100,000.
• C) Each general partner would receive $30,000,and each limited partner would receive $120,000.
• D) Each general partner would receive $120,000,and each limited partner would receive $30,000.

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