SIE Understanding Products and Their Risks Practice Question 68

Question: 68

Which of the following is correct regarding the general partner in a direct participation program that is a real estate limited partnership?

A. The GP may have no ownership interest.

B. The GP may have no ownership interest until the entity has a profitable return for two consecutive years.

C. The GP must invest at least one percent of the entity's capital.

D. The GP must invest at least ten percent of the entity's capital.