Question

A limited partner:_______

has no personal responsibility for the debts incurred by the partnership.

is guaranteed a return of his or her entire investment in the partnership if the partnership terminates.

can manage the partnership's operations on a daily basis.

has no control over the daily operations of the partnership.

Which of the following statements are not correct?_____

		Interest expense paid for short-term debt is tax deductible.
		Interest expense paid for corporate bonds is tax deductible.
		Common dividends paid are tax deductible.
		Preferred dividends paid are not tax deductible.

Answer 1

In limited partnership there are general partners and limited partners.limited partners are not personally liable for the debts incurred by partnership and has no control over daily operations of partnership .

Limited partner can be made personally liable if he has taken active role in business.

Incorrect statement in second question is common dividend paid are tax deductible.They are not tax deductible because it is not charge against profit like interest but it is distribution of after tax profit earned by company