24. Which of the following is NOT true regarding limited partnerships? a. Genera

Question

24. Which of the following is NOT true regarding limited partnerships? a. General partners of a limited partnership remain jointly and severally liable for partnership obligations. b. Limited partners assume no liability for partnership debts beyond the amount of capital they contributed. c. Limited partners are responsible for the management of the partnership. d. Limited partnerships are often used to raise capital. 25. Which of the following requirements is not required by a corporation to qualify for S corporation status? a. The corporation must have only one class of stock. b. The corporation must file a timely election signed by all the shareholders to be treated as an S corporation. c. The corporation must have no more than twenty-five shareholders. d. The corporation must be a domestic corporation 26. In in nominees as the shareholder sees fit. voting, a shareholder can cast one vote for each share the shareholder owns for each nominee whereas voting, a shareholder may cast all of his or her votes for one nominee or allocate them among the a. cumulative; straight b. absolute; cumulative c. straight; cumulative d. straight; absolute 27. A shareholder who cannot be present at a meeting can vote bythat is, by a written authorization for another person to vote on his or her behalf. a. proxy b. allowance c. record d. nomination

Explanation / Answer

24. Correct option. C
Explanation: In limited partnership, only general partners manage the partnership and they are severally liable for all the debts and liabilities. Limited partners enjoy limited shield (they are not liable for debts beyond their capital amount), so they cannot takes part in management, otherwise they will loose this shield.

25. Correct option: C
Explanation: Corporation is eligible for S status if it has no more than 100 members.

26. Correct option : C
Explanation: In straight voting  one shareholder can only cast one vote per share that the shareholder owns it cannot further divide or distribute for multiple options.
But In cumulative voting shareholder can cast one vote for one option or divide his opinion among all options however the shareholders decides.

27. Correct option: A
Explanation: In inability to attend meeting, a shareholder can give authority to any person (must not be the shareholder of that company) to cast vote on his behalf. This type of voting is refer as voting by proxy.
The person (member of the company) who appoints proxy is called principal.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.