There are two general partners,each of whom contributes $5,000 in capital to a limited partnership.There are two limited partners,each of whom contributes $20,000.The total amount of capital contributed is $50,000.The limited partnership agreement does not stipulate how profits and losses are to be allocated.Assume that the limited partnership makes $300,000 in profits.Under the RULPA,how much would each partner receive?

Question

Quizplus · Accepted Answer

Under the RULPA, profits and losses are allocated equally among the general partners, and equally among the limited partners. In this case, there are two general partners and two limited partners, so each general partner would receive $30,000 (300,000/6), and each limited partner would receive $120,000 (300,000/6).

There Are Two General Partners,each of Whom Contributes $5,000 in Capital