Which of the Following Is NOT True for Limited Partnerships

question 52

Multiple Choice

Which of the following is NOT true for limited partnerships?

• A)Limited partners can only manage the business.
• B)One general partner must exist who has unlimited liability.
• C)Only the name of general partners can appear in the name of the firm.
• D)Limited partners may sell their interest in the company.

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Definitions:

Fair Value

The estimated market price of an asset or liability, based on current market conditions and arm’s length transactions, used for financial reporting purposes.

Equipment

Tangible property used in operations, such as machinery and computers.

Consolidated Balance Sheet

A financial statement showing the financial position of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The gain expected to be received from an asset disposal or the amount necessary to cover a liability in a mutual transaction among market counterparts at the estimated date.