Josh and Kya Form Longview Associates,a Limited Part?nership,to Invest in Real

question 7

Multiple Choice

Josh and Kya form Longview Associates,a limited part?nership,to invest in real estate.Compared to a sole proprietorship and a general partnership,a limited partnership has limited

• A)business purposes.
• B)investment opportunities.
• C)personal liability.
• D)requirements.

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Definitions:

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.

Strip Bond

A type of bond where the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.