Darren and Jeff Enter into a Partnership Where Darren Is

question 48

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 take an active role in the management of 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:

Biologically Related

Being biologically related means sharing genetic material with another individual, typically through blood relations such as parent-child or siblings.

Alcoholic

A person who suffers from alcoholism, a chronic disorder characterized by the compulsive and uncontrolled consumption of alcohol.

Harm Reduction

A set of practical strategies and ideas aimed at reducing negative consequences associated with drug use and other risky behaviors.

Metabolizes Alcohol

The process by which the body breaks down alcohol through enzymes, primarily in the liver, converting it into substances that can be eliminated.