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Umnica [9.8K]
3 years ago
5

Laura is an investor and a limited partner in a limited partnership. Two years after she becomes a limited partner, Laura thinks

that the general partners are not doing a very good job managing the affairs of the limited partnership and participates in the management of the limited partnership. While she is participating in management, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following holds well?
A. Laura has unlimited personal liability as a limited partner.
B. Laura is personally liable as the bank, in good faith, thought she is a general partner.
C. Laura's liability is restricted to the value of her capital investment in the partnership.
D. Laura is not personally liable as she is a limited partner on paper.
Business
1 answer:
erik [133]3 years ago
8 0

Answer

Option B. Laura is personally liable as the bank, in good faith, thought she is a general partner

Explanation:

Limited Partnership (LP)

This is Business entity that exists in line with state statutes that gives limited liability to some of its members who called limited partners.

RULPA

This is simply called Revised Uniform Limited Partnership Act. It is the model for Limited Partnership legislation in most states.

Limited Partner

This is a part or member of a limited partnership.it is that individual who is not involved in controlling the business and whose liability is limited to amount invested in the business.

General Partner

It is simply a member in a limited (or general) partnership who controls the business and has unlimited personal liability.

In the above scenario, Laura will be taken as a general partner and will be held personally accountable or liable for the loan, and also along with the general partners of the limited partnership.The rule of RULPA gives the right for a limited partner to be involved in the management of the partnership’s affairs and not losing the limited liability if the limited partner has been formally employed by the partnership to be an executive of the partnership.

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Answer:

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Since the correlation coefficient between both stocks X and Y is zero, when one stock has an expected return a little higher than 15%, the other stock will have an expected return a little lower than 15%, so both variations basically cancel out each other. So the average expected return for both X and Y will be 15%.

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How are most of our decisions made? After sober reflection With conscious consideration Slowly and deliberately By balancing rat
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Answer:

Through the decision making process

Explanation:

The decision making process is resumed in 5 steps:

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3 years ago
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<u>more audible</u>

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For example, an increase in the money supply, a variable, will cause the price level, a variable, to increase but will have no l
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Answer:

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In other words, nominal value is calculated in monetary terms, whereas real value is measured on the basis of goods or services

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3 years ago
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed co
mojhsa [17]

Answer: The break even point in dollars is $2,000,000.

We calculate the break even point (BEP) in dollars as follows:

\mathbf{BEP = \frac{Fixed Costs}{Contribution Margin Ratio}}

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\mathbf{Contribution Margin Ratio = \frac{Sales - Variable Costs}{Sales}}

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Substituting the Contribution Margin Ratio in the break even point formula we get,

\mathbf{BEP = \frac{800000}{0.4}}

BEP = $2,000,000


7 0
3 years ago
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