Question: The difference between a general partner (GP) and a limited partner (LP) is: a. A limited partner is restricted in the amount they can invest

The difference between a general partner (GP) and a limited partner (LP) is:

a. A limited partner is restricted in the amount they can invest in the fund, while a general partner can invest as much as they want

b. The limited partner provides investment capital, and the general partner invests on behalf of the limited partner

c. The general partner provides investment capital, and the limited partner invests on behalf of the general partner

d. Limited partners cannot invest in venture capital, due to SEC regulations, whereas general partners have sufficient capital reserves to be exempted

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Exercise 6: The Gilbert Building (VI) The Gilbert Building will be purchased by a partnership. The limited partners (LPs) have put up 90% of the $1.5 million to purchase the building (plus 90% of any...

A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000,...

Assumptions (Base Case for Single Asset) Full-Year Operating Statement # of Units in Asset 100 Revenue Average Rent per Unit $2,000 per month Gross Revenue Vacancy Loss 5.0% of gross revenue less...

Please answer all questions thoroughly. Thank you. Macy's & JC Penney - Questions 1. Using the guidelines provided below, compute financial ratios for fiscal years 2009, 2010, and 2011 (ending on...

3 4 Net Cash Flow Waterfall 5 6 20.0N 7 Net Cash Flow (NCF) Waterfall Retained by Asset for Operations Available for Partner Distributions Appraised Gross Asset Value Asset Ownership Structure...

D E F R Net Operating Income (NOI) less Annual Debt Service less Capital Improvements Net Cash Flow (NCH 1,900,000 (1.583,333) (120,000 196,667 157,333 Net Cash Flow (NCF) Waterfall: Retained by...

REAL ESTARE QUESTION PLEASE: ANSWER IN EXCEL AND SEND ME PICTURE THANKS. The Gilbert Building will be purchased by a partnership. The limited partners (LPs) have put up 90% of the $1.5 million to...

Your fund is a VC fund in software services sector, where you are a general partner (GP). Your optimal portfolio size' is 10 ventures for this current fund of 10MM raised from your LPs. Company = {1,...

1 When a parent makes a loan to a child and does not charge interest, there is no income or gift tax consequence if the child pays back the principal. True False 5 points QUESTION 2 In a...

True False 5 points QUESTION 2 In a sale-leaseback, if the sale price is less than the FMV of the property, the lessor is making a gift of the difference to the lessee. True False 5 points QUESTION 3...

Johnson's Boat Yard, Inc., is completing the accounting process for the year just ended, November 30, 2010. The transactions during 2010 have been journalized and posted. The following data with...

Governmental accounting a new not-for-profit board member suggests that the NFP create a separate audit committee to work with the external auditors. The other board members feel that it is already...

How can common sized financial statements help in assessing a companies capital structure

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".