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Question 13.) One of the reasons that limited partnerships are favored by many investors is A....

Question 13.)

One of the reasons that limited partnerships are favored by many investors is

A. lower brokerage tax deductions

B. limited liability for all partners

C. continuity of life

D. limited liability for the limited partners

E. none of the above

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Homework Answers

Answer #1

limited partnerships are favored by many investors because the liability is limited to the extent of their capital in the partnership, just like a limited company. there are two kinds of partners - limited partner and unlimited partner. In a limited partnership, limited liability is applicable for limited partners, whereas the liability is unlimited for unlimited partners.

Hence the answer is A

continuity of life is applicable for a company and not partnerships

lower brokerage tax deductions are not a significant factor as the regulations change in every jurisdiction

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