Which of the Following Is True Regarding Matt's Entitlement to Share

question 57

Multiple Choice

Which of the following is true regarding Matt's entitlement to share in profits?

• A) During the first year of business, a limited partner is not legally entitled to a share of the profits.
• B) During the first year of business, a limited partner is only entitled to a share of the profits at the discretion of the general partners.
• C) A limited partner is generally entitled to a share of the profits, but during the first year of business, a limited partner is only entitled to one-half of whatever the share would normally have been.
• D) During the first year of business and also in subsequent years, a limited partner has a right to share in the profits.
• E) A new limited partner is only entitled share in the profits after a partnership has been successful for three consecutive years.