Which of the Following Statements Regarding Limited Partnerships Is True

question 33

Multiple Choice

Which of the following statements regarding limited partnerships is true?

• A) There is no limit on a limited partner's liability.
• B) A limited partner's liability is limited by the amount of his investment.
• C) A limited partner is not liable until all of the assets of the general partners have been exhausted.
• D) A general partner's liability is limited by the amount of his investment.

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Definitions:

Distributed

In finance, refers to the allocation of dividends or other payouts to shareholders from a corporation's earnings.

Recognized

Acknowledged or understood, often referring to income, gains, or losses for tax purposes.

Distribution

Withdrawals or payouts from investments, retirement accounts, or revenue from a business that may be taxable.

Current Cash Distribution

In investments, it refers to the actual cash distributed to investors or partners from the operations of a business, fund, or another form of investment.