Which of the Following Is True About a Limited Partnership

question 43

Multiple Choice

Which of the following is true about a limited partnership?

• A)A limited partnership has difficulties raising large amounts of capital.
• B)A limited partnership can be created only by complying with a state statute permitting limited partnerships.
• C)A limited partnership cannot be transferred to another person.
• D)Limited partners are liable for the obligations of the limited partnership after making their capital contributions.

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Definitions:

Agency Relationships

Refers to the connection between principals (such as shareholders) and agents (such as company executives), where agents are expected to act in the best interests of principals.

Owner/Managers

Individuals who both own and actively manage a company, blending ownership and operational responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly rights to dividends and voting in company matters.

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set.