Let$$s consider a partnership company with $2$ general partners and $1$ limited partner with the

following structure:

Equity investment at t Ownership

GP$110054\%$

GP$25027\%$

LP $5019\%$

The company was established at t$.$ All equity investment made at t was used to purchase assets. The

company ends its operation at t$+1.$ The assets have zero remaining value at t$+1.$

$($a$)$ Suppose that the company makes a profit of $400$ at t$+1.$ Profit is distributed to partners in

proportional to ownership. What is the net gain for each partner?

a$.$ GP$1$:

b$.$ GP$2$:

c$.$ LP:

$($b$)$ Suppose that the company makes a loss of $150$ at t$+1.$

a$.$ Does LP need to pay any of this loss? $($Yes $/$No$)$

b$.$ Loss is distributed to partners with liability for the loss in proportional to ownership.

What is the net gain for each partner?

i$.$ GP$1$:

ii$.$ GP$2$:

c$.$ LP: