Which of the Following Is True About a Limited Partnership

question 43

Multiple Choice

Which of the following is true about a limited partnership?

• A)A limited partnership has difficulties raising large amounts of capital.
• B)A limited partnership can be created only by complying with a state statute permitting limited partnerships.
• C)A limited partnership cannot be transferred to another person.
• D)Limited partners are liable for the obligations of the limited partnership after making their capital contributions.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume.

Total Costs

The complete aggregate of expenses incurred by a business, encompassing both fixed and variable costs.

Differential Revenue

The difference in revenue between two alternative decisions or scenarios.

Course of Action

A plan or strategy designed to achieve a specific goal or solve a problem.