Which One of the Following Statements About a Limited Partnership

question 23

Multiple Choice

Which one of the following statements about a limited partnership is correct?

• A)All partners have their losses limited to their capital investment in the partnership.
• B)All partners are treated equally.
• C)There must be at least one general partner.
• D)Equity financing is easy to obtain and unlimited.
• E)Any partner can transfer his or her ownership interest without ending the partnership.

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Definitions:

Net Worth

The difference between a person’s assets (what is owned) and that person’s liabilities (what is owed).

Liabilities

Financial obligations or debts that a company or individual owes to others.

Kilowatt-Hour

A unit of energy equivalent to one kilowatt of power expended for one hour of time, commonly used to measure electricity consumption.

Watts

The SI unit of power, indicative of the rate at which energy is transferred or converted.