SIE Understanding Products and Their Risks Practice Question 71

Correct Answer: C

Explanation:

C: Choice C is correct because a limited partner's failure to provide funds in response to a capital call as provided in the capital call agreement could result in the loss of reduction in that partner's ownership stake. Choice A is incorrect because a limited partnership must have at least one limited partner. Choices B and D are incorrect because a limited partner does not participate in management decisions. Otherwise, its status could change to general partner, resulting in its assuming unlimited risk.