Choose the One Most Appropriate Answer for Each

question 4

Multiple Choice

Choose the one most appropriate answer for each.
-a limited partner who does not materially participate on a "regular, substantial, and continuous basis"

• A)accelerated depreciation
• B)active investor
• C)appreciation
• D)at-risk rules
• E)blind pool
• F)cash flow
• G)cash-on-cash
• H)downside risk
• I)equity build-up
• J)GLITAMAD
• K)investment strategy
• L)leverage
• M)master limited partnership
• N)negative cash flow
• O)negative leverage
• P)non-recourse financing
• Q)passive investor
• R)prospectus
• S)straight-line depreciation
• T)tax shelter

---

Definitions:

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital by companies and governments.

Efficient

Being effective without wasting time, effort, or expense.

Prices

The amounts of money expected, required, or given in payment for something.

Efficient Markets Hypothesis

The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.