The true statement about Master Limited Partnerships is <u>D. Master limited partnerships</u> sell partnership interests to investors on public markets like the New York Stock Exchange.
<h3>What are master limited partnerships?</h3>
Master limited partnerships are publicly-traded partnerships taxed as partnerships.
While combining the tax benefits of a partnership with the liquidity of publicly-traded entities, master limited partnerships have become hybrid entities of limited partners and general partners.
The limited partners invest their capital into the partnership for periodic cash distributions, while the general partners are responsible for running the MLP's operations. The compensation of general partners is known as incentive distribution rights (IDRs).
Thus, the correct option for Master Limited Partnerships is <u>Option D</u>.
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Answer:
(1) Shen spends $200 to purchase legal service from Rowan and Martin. Associates - Dollars
(2) Valerie spends $8 to order a mojito cocktail - Dollars.
(3) Shen earns $375 per week working for Little Havana - Inputs.
Explanation:
<em>(1) & (2) statements in the "Answer" above</em> are <em>purchase on cash </em>transactions. Hence, they imply the flow of <em>dollars</em> from the household to the firm.
<em>(3) statement in the</em> <em>"Answer" above</em> implies giving of <em>factor input labor services</em> by Shen to Little Havana. Hence, it indicates the flow of <em>inputs </em>from the household to the firm.