What is the nature of liability of limited partners as to limited partnership debts or obligations?
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What is the nature of liability of limited partners as to limited
A. They are liable up to the extent of their capital contribution only
B. They are liable pro-rata up to the extent of their separate assets after the partnership assets are exhausted
C. They are liable pro-rata up to the extent of their capital contribution only
D. They are liable equally up to the extent of their separate assets after the partnership assets are exhausted
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- Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?Which is true about a limited partnership (LP)? a. General partners are exposed to liability for all of the businesses’ debts, and limited partners are only exposed to the extent of their investment b. Limited partners are exposed to liability for all of the businesses’ debts, and general partners are only liable to the extent of their investment c. All partners, both general and limited, are exposed to liability for all of the businesses’ debts d. All partners are exposed to liability only to the extent of their investmentWhich of the following statements is correct in relation to limited partners? Select one: a. Their liability is limited to the capital they have agreed to invest in the partnership b. They have no liability for partnership debts c. They have full liability for partnership debts.
- Which of the following must occur for a new partner to enter the partnership by acquiring an ownership interest directly from an existing partner? A. The new partner must acquire all of the current partner's ownership interest B. Existing partners must know the amount the new partners is paying for the ownership interest C. The new partner must live in the same state as the other partners D. Existing partners must approve the admission of the new partner into partnershipA business firm whose shares are held by a single person may be a sole proprietorship, but it cannot a corporation. True False4. Which of the following statements are true about an S Corporation? Group of answer choices A. Shareholders of an S Corps have limited liability B. Shareholders of an S Corps are liable for all profits and losses as a flow-through tax entity C. S Corps only have one class of stock D. S Corps limit the number of shareholders to no more than 100 E. All of the above are true
- Describe one the conditions that must be satisfied before a derivative suit can be instituted. A. The company is under the control of the majority shareholders/directors. B. A wrong must not have been done to the company by the majority shareholders. C. Any damages awarded will not go to the company but to plaintiff shareholder. D. An individual shareholder or minority decides to sue the wrongdoers for or on behalf of company.Mr. B’s business is not registered as a One-Person Corporation (OPC); it is thus a single proprietorship. Unable to pay his construction materials supplier, the latter wishes to go after said entrepreneur's vehicles at home. Here, can said obligation of the business be paid-off through Mr. B's other assets? Briefly reason-out.Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business? A. None of the above B. Avoidance of personal liability C. Possession of a partner D. Little capital
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