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Question 1 of 10
1. Question
Which of the following is not true about direct participation programs (DPPs)?
I. DPPs were created to form tax shelters by investing in real estate, equipment leasing, and oil and gas programs.
II. DPPs are a popular investment.
III. In DPPs there are associated risk.
IV. DPPs derive its income from rental payments and tax credits.Correct
Direct Participation Programs (DPPs) Direct participation programs (DPPs) were created to form tax shelters by investing in real estate, equipment leasing, and oil and gas programs. Although those shelters have largely been eroded by the Internal Revenue Service (IRS) due to overuse by investors and DPPs are not a popular investment choice due to the associated risk.
Incorrect
Direct Participation Programs (DPPs) Direct participation programs (DPPs) were created to form tax shelters by investing in real estate, equipment leasing, and oil and gas programs. Although those shelters have largely been eroded by the Internal Revenue Service (IRS) due to overuse by investors and DPPs are not a popular investment choice due to the associated risk.
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Question 2 of 10
2. Question
A limited partnership must have-
I. A general partner
II. A limited partner
III. Limited life
IV. Locked investmentCorrect
A limited partnership must have:
•A general partner, or manager, and a limited partner, or investor, at a minimum.
•Limited life
•Locked investmentIncorrect
A limited partnership must have:
•A general partner, or manager, and a limited partner, or investor, at a minimum.
•Limited life
•Locked investment -
Question 3 of 10
3. Question
The certificate of limited partnership works like a –
Correct
The certificate of limited partnership is filed with the home state of the limited corporation and works like a contract.
Incorrect
The certificate of limited partnership is filed with the home state of the limited corporation and works like a contract.
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Question 4 of 10
4. Question
Which is (are) the following details must be included in the certificate of limited partnership?
I. Current investments and conditions of future investment by the original partners
II. Distributions of profits and losses
III. Length of the life term
IV. Dissolution provisionsCorrect
The following is detailed in the certificate of limited partnership:
•Partnership name, or names, titles, and addresses of all partners
•Current investments and conditions of future investment by the original partners
•Distributions of profits and losses
•Length of the lifeterm
•Rules regarding sale or re-assignment ofshares
•Dissolution provisionsIncorrect
The following is detailed in the certificate of limited partnership:
•Partnership name, or names, titles, and addresses of all partners
•Current investments and conditions of future investment by the original partners
•Distributions of profits and losses
•Length of the lifeterm
•Rules regarding sale or re-assignment ofshares
•Dissolution provisions -
Question 5 of 10
5. Question
Which of the following statement(s) is (are) true about Locked Investment?
I. Limited partners cannot sell or transfer their investments like stock, to avoid misuse of tax benefits.
II. Formation Limited partnerships demand great investor commitment and participation, much like managing a company.
III. A limited partnership’s members complete an agreement upon formation.
IV. The certificate of limited partnership is filed with the home state of the limited corporation.Correct
Locked investment: limited partners cannot sell or transfer their investments like stock, to avoid misuse of tax benefits. Formation Limited partnerships demand great investor commitment and participation, much like managing a company, which is why a limited partnership’s members complete an agreement upon formation. This agreement outlines the basic rights and obligations of investors, or limited partners, and is called a certificate of limited partnership. The certificate of limited partnership is filed with the home state of the limited corporation and works like a contract, obligating its members to keep in compliance with the agreed terms.
Incorrect
Locked investment: limited partners cannot sell or transfer their investments like stock, to avoid misuse of tax benefits. Formation Limited partnerships demand great investor commitment and participation, much like managing a company, which is why a limited partnership’s members complete an agreement upon formation. This agreement outlines the basic rights and obligations of investors, or limited partners, and is called a certificate of limited partnership. The certificate of limited partnership is filed with the home state of the limited corporation and works like a contract, obligating its members to keep in compliance with the agreed terms.
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Question 6 of 10
6. Question
The least risk types of real estate limited partnerships is-
Correct
Public or government-assisted housing: This limited partnership investment derives its income from rental payments and tax credits. This is the least risky of real estate investments because the government backing these programs compensates for any payments tenants miss.
Incorrect
Public or government-assisted housing: This limited partnership investment derives its income from rental payments and tax credits. This is the least risky of real estate investments because the government backing these programs compensates for any payments tenants miss.
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Question 7 of 10
7. Question
Which type(s) of real estate limited partnerships has (have) no rental income or return on investment?
I. Existing real estate
II. Land
III. New Construction
IV. Public or government-assisted housingCorrect
Land: Investing in land has the simplest of goals for a limited partnership: to wait for the land to appreciate. Because there is no rental in- come or return on investment, this is considered a high-risk investment.
Incorrect
Land: Investing in land has the simplest of goals for a limited partnership: to wait for the land to appreciate. Because there is no rental in- come or return on investment, this is considered a high-risk investment.
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Question 8 of 10
8. Question
Real estate limited partnerships invest in –
I. Government-assisted housing
II. Land
III. Construction
IV. Existing propertiesCorrect
Real estate limited partnerships invest in government-assisted housing, land, construction, and existing properties.
Incorrect
Real estate limited partnerships invest in government-assisted housing, land, construction, and existing properties.
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Question 9 of 10
9. Question
The goal of existing real estate investments is for the limited partnership-
Correct
The goal of existing real estate investments is for the limited partnership to gain immediate rental income.
Incorrect
The goal of existing real estate investments is for the limited partnership to gain immediate rental income.
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Question 10 of 10
10. Question
Which is (are) the following statement(s) true about Public or government-assisted housing investment?
I. This limited partnership investment derives its income from rental payments and tax credits.
II. This is the least risky of real estate investments.
III. These programs are compensated by the government for any payments tenants miss.
IV. There is no rental income or return on investment.Correct
Public or government-assisted housing: This limited partnership investment derives its income from rental payments and tax credits. This is the least risky of real estate investments because the government backing these programs compensates for any payments tenantsmiss
Incorrect
Public or government-assisted housing: This limited partnership investment derives its income from rental payments and tax credits. This is the least risky of real estate investments because the government backing these programs compensates for any payments tenantsmiss