The following statements are true of partnership agreements:
I. The partnership agreement has a limited term, 10 years or less.
II. The general partners get a management fee plus carried interest in 20% of any profits earned by the partnership.
III. The limited partners get paid off first, but they get only 80% of any further returns.
IV. The general partners can reinvest the limited partners' money.
A) I and II only
B) I, II and III only
C) I, II, III and IV
D) II and III only

Question

Quizplus · Accepted Answer

The partnership agreement has a limited term, 10 years or less (I), the general partners get a management fee plus carried interest in 20% of any profits earned by the partnership (II), and the limited partners get paid off first, but they get only 80% of any further returns (III).

The Following Statements Are True of Partnership Agreements