Stanley is a well-known retired movie personality who purchased a limited partnership interest in Terrific Movie Productions upon its initial syndication. Which of the following is true?
A. If Stanley permits his name to be used in connection with the business and is held out as a participant in the management of the venture, he will be liable as a general partner.
B. The sale of these limited partnership interests is not subject to SEC registration.
C. This limited partnership may be formed with the same informality as a general partnership.
D. The general partners are prohibited from also owning limited partnership interests.
Answer: A. If Stanley permits his name to be used in connection with the business and is held out as a participant in the management of the venture, he will be liable as a general partner.
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