Which of the following will not result in termination of a limited partnership?
Answer(s): A
transfer of ownership of a limited partnership interest. Transfer of ownership does “not” result in automatic termination.
Creditors whose claims are not settled upon dissolution of a limited partnership may seek recourse from:
Answer(s): B
the general partner’s personal assets. When a partnership no longer has assets, but does have debts, creditors may look to the personal property of the general partner.
Crossover is best defined as:
the point at which income exceeds deductions. This is the definition of “crossover”.
Which of the following pairs of corporation characteristics are easiest for a partnership to avoid?
Answer(s): D
continuity of life of the business and transferability of assets. Partnerships may seek to avoid continuance of the business life and asset transfer. The other choices are too important for partnerships to sacrifice.
Which of the following best describes depreciation?
deductions from gross income to offset lower value of equipment. The cost of equipment is deducted from gross income over the life of the equipment, as its value declines.
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