Which of the Following Is Correct with Respect to Limited

question 70

Multiple Choice

Which of the following is correct with respect to limited partnerships?

• A)Limited partnership refers to the fact that some partnerships are only created for a limited period of time.
• B)Limited partnership refers to the fact that some partners have limited liability.
• C)Limited partnership refers to the fact that no more than five people are allowed to be partners in such partnerships.
• D)Limited partnership refers to the fact that limited partnerships can only carry on in certain kinds of businesses.
• E)Limited partnership refers to the fact that the partnership can only issue common shares.

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Definitions:

Total Dividend

The sum of all dividends paid out to shareholders for a specific period, representing the share of profits distributed.

Reacquired Shares

Shares that were previously issued and have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Stock

A type of security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends in case they are not paid as scheduled, ensuring that dividends are paid out before any dividends can be issued to common stock shareholders.