Darren and Jeff Enter into a Partnership Where Darren Is

question 54

Multiple Choice

Darren and Jeff enter into a partnership where Darren is the limited partner and Jeff is the general partner.Which of the following is true?

• A)Limited partners can never take an active role in the management of the partnership.
• B)Limited partners can take an active role in the management but they will lose their limited liability up to the amount of the general partner.
• C)Limited partners cannot participate in controlling the partnership, but they can advise management.
• D)In a limited partnership, the general partner and the limited partner have limited liability.That is why it is called a limited partnership.
• E)A limited partnership exists when two or more people carry on business with the intention of making a profit, but limited partnerships must be registered in order for the limited partner to retain limited liability.

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Definitions:

CaCO3

Calcium carbonate, a chemical compound found in rocks as the minerals calcite and aragonite, and is the main component of pearls, as well as marine organisms' shells.

CO2

Carbon Dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration.

CaO

Calcium oxide, a white, caustic, alkaline crystalline solid commonly known as quicklime, used in cement production and various chemical processes.

Liters

A metric unit of volume equal to one cubic decimeter, commonly used to measure liquids and gases.