Asked by
Jacquelynne Bergschultz
on Nov 30, 2024Verified
Unless otherwise agreed, under RULPA, a limited partner is entitled to repayment of his capital contribution under which of the following conditions?
A) Before general partners are repaid their capital contribution.
B) The partnership's postdistribution assets would be sufficient to pay all of its liabilities to nonpartners.
C) Only after general partners have been repaid their capital contribution.
D) None of these.
Capital Contribution
The cash, property, or other assets that investors or owners provide to a business in exchange for an ownership interest or equity.
RULPA
The Revised Uniform Limited Partnership Act, designed to update and standardize the law governing limited partnerships across the states.
Limited Partner
An investor in a limited partnership, who contributes capital but does not take part in management and is only liable to the extent of their investment.
- Familiarize with the legal directives for the inception and administration of LLPs, together with the regulations concerning partners' distributions and contributions.
Verified Answer
SJ
Learning Objectives
- Familiarize with the legal directives for the inception and administration of LLPs, together with the regulations concerning partners' distributions and contributions.