Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Which of the following statements regarding limited
A) There is no limit on a limited partner's liability.
B) A limited partner's liability is limited by the amount of their investment.
C) A limited partner is not liable until all the assets of the general partners have been exhausted.
D) A general partner's liability is limited by the amount of their investment.
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- What form of partnership allows some of the investors to limit their liability?arrow_forwardHow does the risk associated with investment in a partnership differ for the general partner versus a limited partner?arrow_forwardHow does a limited liability partnership (LLP) differ from a general partnership? Legal limits have been established regarding the number of people who can participate in the LLP. OLLP partners are liable for some or all of the obligations of the partnership, but have limited liability for the negligence or malpractice of other partners. O LLP partners have limited liability for the obligations of the partnership but unlimited liability for the negligence or malpractice of other partners. Participation in the LLP is limited to members of a regulated profession, such as accounting or health care. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- 2) For IRC §704 a) What determines the partner's distributive share? What is a partner's distributive share? b) What if the partnership agreement does not provide for the partner's distributive share? c) Under Treas. Reg. §1.704-2, define a nonrecourse liability (the actual definition not the cite of where it is defined)? Cite where it is defined.arrow_forwardChoose the response that correctly completes the following sentence about an individual partner's outside basis in a partnership. A partner's outside basis: Can be less than zero. Does not change as long as the partner maintains their partnership interest. Is used to apply the basis limitation to losses from a partnership. Must be tracked by the partnership.arrow_forwardAn estate cannot be treated as a partnership. True or false?arrow_forward
- One of the final steps in terminating a partnership is the distribution of remaining assets to the partners after all obligations have been met. What is the basis for distributing any remaining assets/cash among the partners? How would loans from partners affect the distribution of partnership assets?arrow_forwardA general partnership, unlike a limited partnership, is an entity that legally functions separate and apart from its owners. True Falsearrow_forwardWhat is a partnership dissolution? Does dissolution automatically necessitate the cessation of business and the liquidation of partnership assets?arrow_forward
- a) How is a sec 707(a) payment to a partners for service treated by the partners and the partnership? when will it be recongnise by a cash basis partner? when will it be deducted by a partnership? b) How is a guaranteed payment for services treated by the partner and the partnership? What is it recongnized or deducted?arrow_forwardWhich of the following is a disadvantage of general partnerships? a) A partner who withdraws from a partnership cannot be held liable for any debts the firm had at the time of withdrawal. b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. c) All general partners have unlimited liability for the debts and obligations of their business. d) The partners in a general partnership are exposed to double taxation.arrow_forwardSome of the differences between general partners and limited partners are:arrow_forward
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