Limited Partners Can Participate in a Single Aspect of the Business

question 48

True/False

Limited partners can participate in a single aspect of the business (for instance, sales or marketing), but they cannot participate in the general operational activities of the business.

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Definitions:

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed directly.

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that dictate how financial statements should be reported and are recognized globally.

GAAP

Stands for Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting.

Operating Cash Flows

The cash generated from the core business activities of a company in a given period, as opposed to cash flows from investing or financing activities.