Question

A type of partnership called a ___________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a partnership with profits passing through to the owners and taxed as the owner's personal income.

A. limited partnership
B. combined general partnership
C. cooperative partnership
D. master limited partnership

Answer 1

Answer:

The correct answer is letter "D": master limited partnership.

Explanation:

A Master Limited Partnership or MLP is a publicly-traded partnership in which the limited partnership interest is traded in much the same way as the corporate shares. In an MLP there are two groups of partners: the general partner -holding a small percentage- and the limited partners -controlling most of the partnership. The limited partners pay MLP revenue taxes on their personal income tax returns.