Which of the Following Explains the Difference Between Limited Partnership

question 37

Multiple Choice

Which of the following explains the difference between limited partnership and general partnership?

• A) In limited partnerships,all partners are equally liable to the firm's debt unlike general partnerships.
• B) In limited partnerships,partners incur single taxation on earnings unlike general partnerships.
• C) In general partnerships,whenever the mix of partners is changed,that partnership is dissolved unlike limited partnerships.
• D) In general partnerships,no government permission is required for the setup and maintenance of business unlike limited partnerships.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Vintage

A term used to describe the age of an item, often indicating quality, rarity, and value, particularly in the context of wines, cars, and collectibles.

Stored

Kept or accumulated for future use.