Kick-out Rights in Partnerships

Financial consequences for limited partners when exercising kick-out rights. (correct)

Existence of a clear process to exercise kick-out rights.

The likelihood of the rights being exercised is high.

Availability of suitable replacements for current decision makers.

When the probability of exercising the rights is low.

When there are many qualified replacements for current decision makers.

When limited partners face financial penalties for exercising the rights. (correct)

When an explicit mechanism for exercising the rights exists.

Financial penalties associated with exercising the rights. (correct)

Availability of suitable replacements.

Existence of an explicit exercise mechanism.

Probability of exercising the rights.

<p>When financial penalties deter limited partners from exercising the rights.</p> Signup and view all the answers

<p>Financial penalties associated with exercising the rights.</p> Signup and view all the answers