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:

Capital Budgeting Decisions

The process by which a business evaluates and selects long-term investments that are worth more than their cost, considering their potential to generate future profits.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount per annum.

Investment Proposals

Proposals put forward for investing capital in projects or securities, aiming to generate returns.

Percentage of Sales Approach

A financial forecasting method that estimates changes in balance sheet or income statement accounts as a fixed percentage of sales.