In a Limited Partnership, Which of the Following Are True

question 3

Multiple Choice

In a limited partnership, which of the following are true?

• A) There is no practical need for a general partner.
• B) Only a general partner may actively transact business.
• C) A limited partner cannot become a general partner without consent of the all other partners.
• D) Limited partners may draw against capital, prior to dissolution, only up to the amount of their own contribution to capital.
• E) A limited partner who agrees not to actively transact business on behalf of the partnership may avoid public disclosure of his or her contribution to capital.

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Definitions:

Multi-axle Vehicle

Multi-axle vehicle is a term for vehicles equipped with more than the standard two axles, providing additional support for heavy loads or improving maneuverability.

Thrustline

Vehicle directional tracking line. Properly set axles should track perpendicular to the vehicle centerline. In other words, the rear wheels should track directly behind the front wheels when the vehicle is moving straight ahead, resulting in a directionally true thrust line. If this were not the case, some dog-tracking tendency would result.

Hard Steering

A condition where the steering of a vehicle becomes difficult, often due to low power steering fluid, malfunctions in the steering system, or tire issues.

Highway Tractor

A type of truck designed primarily for the transportation of goods over long distances on highways.