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:

Capital Gains Yield

The dividend growth rate or the rate at which the value of an investment grows.

Cost of Capital

The rate of return that a company must pay to its creditors and shareholders for using their capital.

Income Return

A measure of the income generated by an investment, usually expressed as a percentage of the investment's cost.

Capital Structure Weight

The proportion of debt and equity that composes a company's financing of its operations and growth, often affecting its risk and return.