Marshall formed a limited partnership for the purpose of engaging in the export-import business. Marshall obtained additional working capital from Franklin and Lee by selling them each a limited partnership interest. Under these circumstances, the limited partnership

A. Will usually be treated as a taxable entity for federal income tax purposes.
B. Will lose its status as a limited partnership if it has more than one general partner.
C. Can limit the liability of all partners.
D. Can exist as such only if it is formed under the authority of a state statute.

Answer: D. Can exist as such only if it is formed under the authority of a state statute.

Business

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