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Questions and Answers
Which type of partnership is characterized by partners sharing in operating the business and assuming liability for the business debts?
Which type of partnership is characterized by partners sharing in operating the business and assuming liability for the business debts?
- Master Limited Partnership
- General Partnership (correct)
- Limited Partnership
- Limited Liability Partnership
What is the main purpose of a limited partnership?
What is the main purpose of a limited partnership?
- To avoid corporate income tax
- To limit the disadvantage of unlimited liability
- To allow partners to trade on stock exchanges
- To provide capital on which a return is expected (correct)
What makes a Master Limited Partnership (MLP) different from a corporation?
What makes a Master Limited Partnership (MLP) different from a corporation?
- It avoids corporate income tax (correct)
- It involves sharing business operations
- It allows trading on stock exchanges
- It has limited liability for partners
In a limited liability partnership (LLP), what do partners risk losing due to their own acts and omissions?
In a limited liability partnership (LLP), what do partners risk losing due to their own acts and omissions?
What type of partnership was created to limit the disadvantage of unlimited liability?
What type of partnership was created to limit the disadvantage of unlimited liability?
Which type of partnership allows certain partners to be liable only for the amount of their investment?
Which type of partnership allows certain partners to be liable only for the amount of their investment?
What type of partner in a partnership has unlimited liability and actively participates in managing the firm?
What type of partner in a partnership has unlimited liability and actively participates in managing the firm?
Which type of partner in a partnership may be known by the public as an owner but does not actively participate in the management of the business?
Which type of partner in a partnership may be known by the public as an owner but does not actively participate in the management of the business?
What type of partner in a partnership has invested in the business but does not have any management responsibility or liability for losses beyond the investment?
What type of partner in a partnership has invested in the business but does not have any management responsibility or liability for losses beyond the investment?
Which type of partner in a partnership takes an active part in the management of the business but is unknown to the public?
Which type of partner in a partnership takes an active part in the management of the business but is unknown to the public?
In a partnership, which type of partner only shares from the profit or losses based on their contribution to the business and does not take part in the management?
In a partnership, which type of partner only shares from the profit or losses based on their contribution to the business and does not take part in the management?
What type of partner in a partnership lends their name to the business, does not contribute capital, and has no right to participate in the management?
What type of partner in a partnership lends their name to the business, does not contribute capital, and has no right to participate in the management?
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