Within a Limited Partnership Context,what Are the Conditions on a Limited

question 38

Multiple Choice

Within a limited partnership context,what are the conditions on a limited partner?

• A) There is a limit to the amount of capital that a limited partner can contribute,as mandated by law.
• B) There is a limit to the number of limited partners that the firm may take on as investors.
• C) The limited partner must remain a low level employee and cannot ever serve in a managerial role in the firm.
• D) A limited partner may not take any active role in the operation of the business.

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Definitions:

Annuity

A series of equal payments at regular intervals.

Semi-Annual Payments

Payments made twice a year, often used in the context of loans, bonds, or other financial instruments.

Perpetuity

An annuity that pays a constant sum to an individual indefinitely, often used as a theoretical model in finance.

Semi-annually

A term used to describe something that occurs or is done twice a year.