Series 7 Exam Practice Test 7: Direct Participation Programs

1. When making a public offering, which of the following documents is a limited partnership required to file with the SEC?

2. Passive income can be written off against?

3. Which of the following documents must be signed by a general partner to accept a new limited partner?

4. Which TWO of the following corporate characteristics are the easiest for a limited partnership to avoid?

I. Having perpetual life

II. Providing limited liability

III. Having a centralized management

IV. Having free transferability

5. Which of the following partnership documents includes the rights and responsibilities of the general and limited partners?

6. Depletion deductions may be claimed for

7. Which of the following types of oil and gas programs are considered the safest for investment for the limited partners?

8. Which of the following type of equipment leasing programs is the riskiest for investors?

9. Which of the following is a benefit of investing in a direct participation program?

10. Which of the following types of oil and gas partnerships are the riskiest?