In a limited partnership, general partners:
a. are not liable for the firm's debts.
b. are nonparticipating investors.
c. have the right to manage the business.
d. cannot transfer their ownership interest.
A limited liability partnership is exist when two or more partners United to conduct a business in which one or more partners liable to the extent he investment made in partnership. Limited partners do not receive dividend but enjoy direct access to the flow of income and expenses.some may aslo call this a limited liability partnership. the main advantage of to this structure is owners are typically not liable for the firm's debt
Therefore from the above information OPTION A is correct
In a limited partnership, general partners: a. are not liable for the firm's debts. b. are...
partners. The partners who manage the limited partnership and are personally liable for the firm debts are called the O a unreserved O b. licensed O c.active O d. general
1. In a limited partnership, partners are classified as general or limited Limited partners manage the business and have unlimited personal liability for its debts.
a. Under a General Partnership, partners are liable only to the extent of their capital contributions. True False b. Under a Limited Liability Limited Partnership, the liability of all partners is limited to the amount of their investments in the firm. True False c. When a partner ceases to be associated in the carrying on of the partnership business, this is called: A. Joint and several liability B. A fiduciary duty C. Winding up D. Dissociation d. Which of the...
Which of the following would not be personally liable for the debts of the business? A sole proprietor. A partner in a general partnership. A general partner in a limited liability limited partnership. A general partner in a limited partnership.
Which one of the following statemernts concerning a partnership is true? Select one: O a. A partnership terminates at the death of any partner. O b. Income from a limited partnership is taxed as corporate income. O c. A primary advantage of a partnership is the ease of transferring ownership. O d. Limited partners in a limited partnership should be actively involved in management decision e. Under a general partnership, only the key partner is personally liable for the business...
Joseph and Savannah are partners in a limited partnership. Joseph is the general partner with a 70% profits interest. Savannah is the limited partner with a 30% profits interest. Even though Savannah is a limited partner, she agreed to make an additional $20,000 capital contribution at any time the partnership required additional working capital. At the end of the year, the balance sheet showed $200,000 in recourse liabilities and an additional $60,000 in nonrecourse liabilities. Joseph’s beginning adjusted basis in...
Which of the following is a characteristic of a general partnership? a. The partnership is subject to federal income tax. b. The partners have limited liability. c. The partnership has an unlimited life. d. The partners have co-ownership of partnership property.
Partnership profits: Multiple Choice are distributed to general partners with interest paid to limited partners. are generally reinvested in the firm rather than being distributed. are distributed to the partners on an aftertax basis. are generally held by the partnership and later distributed as dividend payments. are fully distributed as taxable income to the partners.
In a limited partnership, the liability of the limited partners generally is restricted to the amount of funds that they have invested in the company but the general partners have unlimited liability.
Which of the following statements is true as it relates to limited liability partnerships? A. Only senior partners are liable for the partnership's debts. B. Partners are personally liable for the acts of those under their supervision. C. Partners have no liability in a limited liability partnership arrangement. D. All partners must be AICPA members.