Which of the Following Statements Is Correct with Respect to Limited

question 150

Multiple Choice

Which of the following statements is correct with respect to limited partnerships?

• A)There can be no limited partnerships in Canada.If limited liability is desired,a corporation must be created.
• B)A limited partner can lose his status as a limited partner if he participates in the management of the business.
• C)There can only be one limited partner in any partnership,no matter how many partners are involved.
• D)A limited partner is totally protected and can lose no money.
• E)A limited partnership is created where all partners state in the partnership agreement that they will not be responsible for debts arising out of the partnership business and register as such with the government.

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Definitions:

Perpetual Inventory Method

An accounting method that records goods and materials inventory after every addition or subtraction, providing a continuous record of inventory levels.

General Journal Entries

Account records in the general journal that detail financial transactions and their impact on accounts.

Perpetual Inventory Method

A continuous system of recording inventory transactions immediately as they occur, providing an up-to-date record of stock levels.

General Journal Entries

General journal entries are records of financial transactions in the general journal, making note of the debit and credit of each transaction according to accounting principles.