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:

Economic Loss

A situation where the cost of producing a good or service exceeds the revenue generated from its sale.

Investment

Positioning resources, particularly money, with the expectation of accruing income or a profit.

Capital Gains

The profit achieved from the sale of an asset, like stocks or real estate, where the sale price exceeds the purchase price.

Stock Market

A collection of markets where stocks (shares of ownership in businesses) are bought, sold, and issued, reflecting the economic trends of a country or the world.