When a business owner forms a master limited partnership, what responsibilities does the master partner have toward the minority partner(s)?
A) The master partner must provide detailed operating and financial reports.
B) The master partner must allow the partners a vote on all major business changes and transactions.
C) The master partner must make all liabilities clear before the partnership is formed.
D) The master partner must give up majority ownership.
E) The master partner must allow the partners to take an active role in the business.
Answer: A
Explanation: A) The master partner retains at least 50 percent ownership and runs the business, and minority partners have no management voice. The master partner must regularly provide minority partners with detailed operating and financial reports.
You might also like to view...
The test the courts use to determine if the parties had actually made a binding contract even though the agreement was badly written and some non-essential terms were missing is
A) the reasonable person test B) the objective reasonable bystander test C) a subjective test D) the Red Pencil test E) a consideration test
During the design phase of developing a database system, the users are asked about the need for changes to existing forms and reports
Indicate whether the statement is true or false