G is a general partner in a partnership that leases heavy-duty equipment (e.g., bulldozers, backhoes, compactors, excavators).G's at-risk amount increases as the partnership's recourse debt increases.

Question

Quizplus · Accepted Answer

The at-risk amount of a partner in a partnership represents the amount of money that the partner can potentially lose in the business. In a partnership that leases heavy-duty equipment, the partnership's recourse debt is a factor that affects the amount of risk that G is exposed to. As the partnership's recourse debt increases, G's at-risk amount also increases. Therefore, the statement is true.

G Is a General Partner in a Partnership That Leases