Free SERIES 7 Exam Braindumps (page: 49)

Page 48 of 101

Which of the following are sources of funding for limited partnerships?

  1. proceeds of the offering
  2. periodic assessments on the partners
  3. installment payments
  4. all of the above

Answer(s): D

Explanation:

all of the above. All are sources of funds for limited partnerships along with non -recourse loans.



Which are the primary considerations in evaluating the worth of a limited partnership?

  1. the size of the tax deductions
  2. the cost of assets
  3. the adequacy of funding
  4. both B and C

Answer(s): D

Explanation:

both B and C. The size of tax deductions is not a “primary” consideration.



Which of the following is associated with an income oil and gas partnership?

  1. capital appreciation
  2. the risk of dry holes
  3. high intangible drilling costs
  4. cash flow and depletion allowance

Answer(s): D

Explanation:

cash flow and depletion allowance. The other choices are not applicable because an “income” partnership already has a producing well.



Which of the following is a benefit of Section 8 low-income housing partnerships?

  1. high, reliable income
  2. large deductions
  3. potential for capital appreciation
  4. low risk

Answer(s): D

Explanation:

low risk. The low risk is a consequence of the government guarantee or subsidy.






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