Justin and Michael Form a Limited Partnership and Start a Car

question 61

Multiple Choice

Justin and Michael form a limited partnership and start a car dealership.Justin is the general partner and Michael is the limited partner.Seven months after the commencement of the business,Pedro makes an investment and wishes to become a general partner.A week later,Michael's mother wishes to join the partnership as a limited partner.Which of the following is true in this scenario?

• A)Pedro cannot be admitted as a general partner to the partnership after the business has commenced.
• B)Pedro cannot be admitted as a general partner to the partnership as a limited partnership can only have one general partner.
• C)Michael's mother cannot be admitted as a limited partner to the partnership as a limited partnership can only have one limited partner.
• D)Both Pedro and Michael's mother can choose to be admitted as either general or limited partners to the partnership.

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Definitions:

Forecast

The process of making predictions about future events or trends based on current or historical data.

Regression Analysis

A statistical method used to estimate the relationships among variables, often for the purpose of forecasting future trends or assessing cause and effect.

Adjustment Technique

Methods or procedures used to modify data, processes, or systems in order to correct errors or enhance functionality.

Mean-Variance Efficient Portfolio

An investment portfolio optimized for the highest expected return for a given level of risk, based on modern portfolio theory.