Which of the Following Is Incorrect with Respect to the Law

question 54

Multiple Choice

Which of the following is incorrect with respect to the law governing limited partnerships?

• A) Limited partners can lose their status as a limited partners by failing to register as such.
• B) Limited partners can lose their status as a limited partner by participating in management.
• C) Limited partners, once registered as such, are assured of limited liability.
• D) Limited partners can lose their status as a limited partners by allowing their names to be associated with the name of the partnership.
• E) Limited partners' liability only extends to the amount of money they have invested in the partnership.

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Definitions:

Market Price

The existing rate at which an item or service is offered for buying or selling on the market.

Non-Negative Profit

A profit that is zero or positive, indicating that a business is not losing money.

Economic Profit

The financial gain obtained by a firm or individual after subtracting all explicit and implicit costs from total revenue, often indicating the efficiency and profitability of business operations.

Short Run

A time period in economics during which at least one input is fixed while others are variable.