Which of the Following Statements Regarding Limited Partnerships Is True

question 12

Multiple Choice

Which of the following statements regarding limited partnerships is true?

• A) The words limited partnership or simply LP must appear in the firm's name.
• B) General partners cannot avoid personal liability by incorporating.
• C) Limited partners can lose their liability limitation if they participate in the control of the business.
• D) All of the statements are true.

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Definitions:

Diamond-Water Paradox

A paradox highlighting the discrepancy between the high value of non-essential items, like diamonds, and the low value of essential items, like water, despite their utility.

Marginal Utility

The enhancement in satisfaction or benefit a consumer achieves by consuming an additional unit of a good or service.

Noncash Gifts

Items of value given as presents that are not in the form of currency or monetary instruments.