Which of the following is true of limited partnerships?
A) They are not dependent upon capital contributions of the partners.
B) They allow double taxation of earnings generated.
C) They require filings with the state in order to be set up and maintained legally.
D) They are dependent upon assets and credit of a single proprietor.

Question

Quizplus · Accepted Answer

Limited partnerships require filings with the state in order to be set up and maintained legally. This is true as limited partnerships are a form of partnership in which there are at least two partners, where one partner has unlimited liability and the other partner(s) have limited liability. As a result, there are legal formalities that must be followed in order to create and maintain this type of business entity.

Which of the Following Is True of Limited Partnerships