Which of the Following Statements Is TRUE About a Limited

question 75

Multiple Choice

Which of the following statements is TRUE about a limited partnership?

• A)The general partner takes on greater liability than the limited partners.
• B)In a limited partnership, all partners are considered to be limited partners.
• C)The general partner has first claim on the profit of the partnership.
• D)The partners all share equally in the profit or losses of the partnership.

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Definitions:

Profit Objectives

Financial goals set by a business aiming to achieve a specific amount of profit over a certain period of time.

Short-Term

Relating to financial instruments or borrowing with a maturity of one year or less, or to activities or planning over a similar timeframe.

Profit Projections

Estimated calculations predicting the future profitability of a business over a specific period.

Supporting Documentation

The necessary documents required to substantiate transactions, events, or compliance with laws and regulations.