Which of the Following Is NOT True for Limited Partnerships

question 8

Multiple Choice

Which of the following is NOT true for limited partnerships?

• A) Only limited partners can 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:

360-Day Year

A financial calculation convention using a simplified year of 360 days to facilitate easier interest calculations.

Exact Interest

A method of calculating interest based on a 365-day year or actual number of days in a loan or investment period, providing a precise interest calculation.

365-Day Year

A conventional method of calculating interest based on a 365-day year, often used in financial calculations.

Estimate Interest

An approximation of the interest amount over a certain period based on a given rate.