1 points Which of the following is not considered to be an advantage to doing business as a imited parthernhip? A. The limited parthers have imited liability for the debts and obligations of the limited partnornhip. B. The limited parthership offers unique incorre tax advantages. C. The general pertners have limited liablity for the debts and obligations of the limited partnership. D. The financial interest of the limited partners may be transfered with lew restrictions QUESTION 5 Bubba is a limiled partner in the L-M-A.Redneck Limiled Partnershp, a limited partnership formed foc the purpose of purchasing and dovelcping real estate (lor use as traciorpull stes and Sunday mud-buggy rocing). Bubba chose his status as a limited partner bocause, well frankly, he wasn't aure why except lor the fact that his triend Earnest T. Bass (one of the general partnen) told Bubba that by being a limited parther, he couldnt possibly lose any more money than he contributed lo the business. Bubba had fust alruck if rich afer discovering oll on his place, so he fgured it would be smart to risk only a smail amount in a business he realy didnt understand. Not liong after the Imited partinership formed, Bubba became concemed aboul Earnest ry abity to manoge things (it seemed Earnest T was the "brains" within the general partners and he spent a great deal of tere chucking rocks throvgh windows in town - an oct which detracted from the time spent actualy maneging the LP. Oubbe began to athend the general parthers' moetings and insisted en partcopating in at major decisions conceming partnership business. Sure enough, things were bad Ey the time all was said and done, the parthershipa' creditors wete lett weh many unpaid bilss, totaling thousands of dotlan. Even after complete liquidation of all of the partnershipis assets, there remained over $10,000 in unpaid bils Might credidors preval in a lawsuit against Eubba to recover their losses? Why or why not? Which of the following is not typically considered an advantage of doing business as a limited liability limited partnership? A. At least partial shield liability for all parthers. B. Ability to limit management role of some partnera. C. Full liability shield for at least some of the partners. D. Full liability for the general partners. QUESTION 7 An action brought by a limited partner in the right of limited partnership to recover a judgment in its favor is reforred to as: A. Limited Partnership Action B. Class Action C. Derivative Action D. Dissolution Action Under the Uniform Revised Uimited Partnership Act, which of the following events does not necessarily cause the timited partnership to be dissolved? A. The withdrawal of a limited partnet, B. Explration of the time period specified in the limited partnership cortificate. C. The withdrawal of a goneral partner. D. The entry of a decree of judicial dissolution. QUESTION 16 What is the main source of limited liability limited partnership law? A. Federal law B. State law C.Uniform law D. IRS Regulations QUESTION 17 The general partner in a limited partnorahip is often seen as more of an investor than an actual parther to the partnership. True False Which of the following characteciasics is truo of both poneral partnerships and limited partnerships? A. The parthership must include at least ono limbed partner B. A certifcate muns be fled with the Secretary of State to form the partnership: C. All partners have limited personal liability for the dobts and obligations of the parinerahip D. A perther may be an individual, partnership, fmited partnership, association, or comporation. QUESTION 11 State whether the Partnership Agreernent referenced in the Discussion Focum for the last unit was an actual partnership agreement or something the instructor made up. Explain how you know the andwer. (Obviously the oxplanabion is most important encen othenwise the coctoct anawer to the frat part could just be a guess) In general, the rights and responsibilities of a limied partner in a Limited Partnership are very similar to the rights and responsibilities of a partner in a general partnership. True False QUESTION 13 A limited liability limited partnership must have at least three parthers for the IRS to recognize it as a limited liablity partnership. True False QUESTION 14 If the limited partnership agreement does not specify a manner for allocating the profis and losses, the allocation of profits and losses shall be determined: A. By the vote of the majority of limiled partners B. By the vote of the majority of the general partners C. By the managing partner D. On the basis of the value of the contributions made by each partner that have not been returned. The limited parthership is generally not considered a separate entity for income tax purposes True False QUESTION 2 Which of the following is not a typical characteristic of a limitod liability partnership? A. The porthers are general partners B. The partners are not personaly responsible for any partnership debts C. The partnership must file a Statement of Qualification. D. The partnership has partnernhip taxasion status. QUESTION 3 Explain what is meant by "partial shield" and "full shieldr" To what type(s) of businoss entty do tho terms apply and in what way do they opply? For the toolbar, press ALT+F1D (PC) or ALT+FN+F10 (Mac). Which of the following would not be required of a limiled parthership? A. At least one general parther B. A Statement of Qualification C.At ieast one limited partner D. A Limited Partnership Certificate QUESTION 9 Why does the term "Imited" appear twice in "Vmited liability fimiled partherahip?" Explain what at means in each of the two instances in which it is used Foe the toolbar, oress ALT+F10 ipCi or ALT+FN+F10 IMac). Limited partners of a limited liability limited partnership never serve as agents of the pamtership. True False QUESTION 19 All limited parthers have an equal right to the management of the limited partnership, unless that right is waived. True False QUESTION 20 Which of the following is a true statement concerning ownership of the limited liability partnership? A. Owners of a fimited liability partnership are referred to as members. B. There must be no more than 15 partners in a limited liability partnership. C. Owners of a limited liability partnership have lipited personal liability. D. Owners of a limited liability partnership have limited management roles