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AICPA Exam CPA-Business Topic 2 Question 110 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 110
Topic #: 2
[All CPA-Business Questions]

Lisa is a limited partner in a limited partnership. Jen, one of the other limited partners, is seeking to sell her interest in the partnership to Karen and allow Karen to become a new limited partner. Which of the following statements is true?

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Suggested Answer: D

Choice 'd' is correct. Limited partners have the right to vote on the transfer of interest and admission of a new partner. Admission of a new partner requires unanimous consent.

Choice 'a' is incorrect. A limited partner who acts as a general partner loses her limited liability status to those she acted as a general partner towards.

Choice 'b' is incorrect. Partners can freely transfer their interests in profits and losses to third parties, but the third party cannot become a limited partner without the unanimous consent of the other partners.

Choice 'c' is incorrect. Limited partners must give 6 months notice of withdrawal in absence of an agreement to the contrary.


by Broderick at Apr 07, 2025, 05:27 PM

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Hubert
2 months ago
D is the way to go. Lisa's got to have a vote on this, otherwise it's not a fair process.
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Helene
1 months ago
D) Lisa has a right to vote on the transferring of interest to and admission of Karen as a limited partner.
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Leonida
2 months ago
B) Jen may transfer her interest and make Karen a new limited partner without the approval of the other partners.
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Reta
2 months ago
A) Lisa may engage in the management of the limited partnership without losing her limited liability.
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Thea
2 months ago
Haha, imagine Lisa trying to manage the partnership and still keep her limited liability. What a joke!
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Joanna
2 months ago
D) Lisa has a right to vote on the transferring of interest to and admission of Karen as a limited partner.
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Gianna
2 months ago
B) No way, that's not how it works. Lisa can't manage and keep her limited liability.
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Mireya
2 months ago
A) Lisa may engage in the management of the limited partnership without losing her limited liability.
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Gerald
3 months ago
I think C is a trick question. Limited partners can't just withdraw without notice.
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Felix
1 months ago
I agree, C is definitely a trick question. Limited partners can't just withdraw without notice.
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Georgeanna
2 months ago
B) Jen may transfer her interest and make Karen a new limited partner without the approval of the other partners.
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Lea
2 months ago
A) Lisa may engage in the management of the limited partnership without losing her limited liability.
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Jettie
3 months ago
B is definitely not true. You can't just transfer your interest without approval.
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Effie
2 months ago
B is definitely not true. You can't just transfer your interest without approval.
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Wenona
2 months ago
D) Lisa has a right to vote on the transferring of interest to and admission of Karen as a limited partner.
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Nakisha
2 months ago
A) Lisa may engage in the management of the limited partnership without losing her limited liability.
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Vi
3 months ago
D seems like the right answer. Lisa should have a say in who becomes a new partner.
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Marta
2 months ago
Yes, it's important for all partners to have a say in such decisions. Lisa's rights should be protected.
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Fausto
2 months ago
I agree, D is the correct answer. Lisa should definitely have a say in the admission of a new partner.
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Goldie
3 months ago
But if Lisa engages in management, wouldn't she lose her limited liability?
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Rosalyn
3 months ago
I disagree, I believe the answer is A.
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Goldie
4 months ago
I think the answer is D.
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