The Following Statements Are True of Partnership Agreements

question 51

Multiple Choice

The following statements are true of partnership agreements:
I. The partnership agreement has a limited term, 10 years or less.
II. The general partners get a management fee plus carried interest in 20% of any profits earned by the partnership.
III. The limited partners get paid off first, but they get only 80% of any further returns.
IV. The general partners can reinvest the limited partners' money.

• A) I and II only
• B) I, II and III only
• C) I, II, III and IV
• D) II and III only

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