In a Limited Partnership,limited Partners

question 29

Multiple Choice

In a limited partnership,limited partners:

• A)play an active role in the management of the firm.
• B)do not pay federal income tax on their share of the profits.
• C)are passive investors.
• D)have unlimited liability for the firm's debts.

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Definitions:

Rain Shadow Effect

A meteorological phenomenon where mountains block the passage of rain-producing weather systems, creating a dry area on the leeward side.

Vegetation

Plants in general, or the plant life of a particular area, ecosystem, or period.

Windward Side

The side of a mountain or island that faces the direction from which the wind is coming, typically receiving more rain and having more lush vegetation than the leeward side.

Leeward Side

The side of an island, mountain, or other landmass that is sheltered from the prevailing wind, typically receiving less rain and having different climatic conditions than the windward side.