Stanley is a well-known retired movie personality who purchased a limited partne

Question

Stanley is a well-known retired movie personality who purchased a limited partnership interest in Terrific Movie Productions upon its initial syndication. Terrific has three general partners, who also purchased limited partnership interests, and 1,000 additional limited partners located throughout the United States. Which of the following is correct?
A: If Stanley permits his name to be used in connection with the business and is held out as a participant in the management of the venture, he will be liable as a general partner.
B: The sale of these limited partnership interests would not be subject to SEC registration.
C: This limited partnership may be created with the same informality as a general partnership.
D: The general partners are prohibited from also owning limited partnership interests.

Explanation / Answer

The general partners are prohibited from also owning limited partnership interests.

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