SIE Understanding Products and Their Risks Practice Question 69

Correct Answer: C

Explanation:

C: Choice C is correct because the general partner operates the program, with the responsibility to do so to benefit the limited partners. Choice A is incorrect because each limited partner decides how much to invest, perhaps subject to a minimum and/or a maximum. If provided in the partnership agreement, the general partner may request additional capital from the limited partners, with possibly adverse effects, if a limited partner is not able to fulfill the request or chooses not to do so. Choice B is incorrect because a limited partnership has no board of directors. Choice D is incorrect because some major decisions may be made by limited partners holding a majority ownership interest.