The capital gain on the harvest is shared with ____% for the limited partners and ____% for the general partners, once the limited partners have received their entire original principal.

Question

Quizplus · Accepted Answer

In typical limited partnership arrangements, especially in investment or real estate ventures, profits beyond the return of the original principal are often split with 80% going to the limited partners and 20% to the general partners. This structure incentivizes the general partner to maximize the profitability of the venture, as their earnings increase with the venture's success, after ensuring the limited partners' initial investment is returned.

The Capital Gain on the Harvest Is Shared with ____