Which One of the Following Best Describes the Primary Advantage

question 28

Multiple Choice

Which one of the following best describes the primary advantage of being a limited partner instead of a general partner?

• A)tax-free income
• B)active participation in the firm's activities
• C)no potential financial loss
• D)greater control over the business affairs of the partnership
• E)maximum loss limited to the capital invested

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Definitions:

Net Benefit

The positive difference between all benefits received from a particular action or project after subtracting all associated costs.

Benefits

Advantages or favorable outcomes associated with a particular action, job, or situation, often related to employment or health.

Costs

The expenses associated with acquiring or producing goods, services, or undertaking any business activity.

Monetary Values

The financial worth assigned to goods, services, or assets, expressed in terms of currency.