Series 7 Exam Question 335: Answer and Explanation

Question: 335

Which of the following items can be found in the certificate of limited partnership?

I. The goals of the partnership and how long it's expected to last

II. The authority of the general partner to charge a fee for making management decisions for the partnership

III. How the profits are to be distributed

IV. The amount contributed by each partner, plus future expected investments

• A. I, II, and III
• B. II, III, and IV
• C. I, III, and IV
• D. I, II, III, and IV

Correct Answer: C

Explanation:

C. The certificate of limited partnership is the legal agreement between the limited and general partners and has to be filed with the secretary of state. The certificate of limited partnership includes the name of the partnership, the partnership's primary place of business, the names and addresses of the limited and general partners, the goals of the partnership and how long it's expected to last, the amount contributed by each partner, how the profits are to be distributed, the roles of the participants, how the partnership can be dissolved, and whether a limited partner can sell or assign their interest in the partnership. The authority that allows the general partner to charge a fee for making management decisions is found in the partnership agreement.