Which of the Following Is Correct Regarding a Limited Partnership

question 18

Multiple Choice

Which of the following is correct regarding a limited partnership?

• A) The general partner must make a cash or property contribution.
• B) It can be created in such a way that the general partner has limited liability.
• C) It can only be created pursuant to statutory provisions.
• D) Limited partners are unable to vote on the incurrence of debt other than in the ordinary course of business under the safe harbor provisions of the RULPA.

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Definitions:

Exchange Rate Risk

The potential for investors or companies to experience losses due to fluctuations in the exchange rates between currencies.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account; used in capital budgeting to analyze the profitability of an investment or project.

Forward Exchange Rate

The exchange rate at which two parties agree to exchange currencies at a future date.

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.