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13 Cards in this Set
- Front
- Back
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Define general partnership |
Unequal or equal ownership. Responsibilities may be assigned All owners are liable for actions of the partnership. No liability protection The partnership reports taxes, but the individual owners pay. Not the entity. |
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Does a general partnership pay taxes? |
It is a tax reporting entity, but not tax paying ( the owners pay taxes proportional to their ownership interest) |
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What does DPP stand for? |
Direct participation program |
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What is the main function of a DPP? |
To raise money to invest in real estate, oil and gas, equipment leasing, and other similar ventures |
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Who is responsible for the taxes within a DPP? |
The owners are individually responsible |
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True or false: DPPs are a great investment for a beginner! |
False: DPPs are highly illiquid, and therefore not suited for everyone. |
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What is the most common type of DPP? |
A limited partnership |
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What are the two types of partners In a limited partnership? |
General and limited. There must be at least one of each. |
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What does TIC mean? |
Tenants in common. It provides limited liability and no management responsibilities to the limited partner |
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Define general partner |
They manage the partnership. They have unlimited liability, and use the invested capital to the benefit of the investors (fiduciary responsibility) |
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Can a general partner comingle his personal assets with the partnership funds? |
No |
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What advantages to limited partners have? |
Limited liability The investment is managed by others (The GP) Flow through of income and certain expenses. |
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What are 3 different limited partnership programs? |
Real estate Oil and gas Leasing programs |
