Direct Participation Programs (DPPs): Limited Vs. General Partners

Question 1

Management:
- Manages Partnership

Is this a Limited or General Partner?

Answer 1

General Partner

Question 2

Management:
- Passive Investor Only

Is this a Limited or General Partner?

Answer 2

Limited Partner

Question 3

Liability:
- Unlimited liability

Answer 3

General Partner

Question 4

Liability:
- Limited to Investment Amount

Is this a Limited or General Partner?

Answer 4

Limited Partner

Question 5

Tax Consequences:
- Issuer Directly Receives all Income/Losses

Is this a Limited or General Partner?

Answer 5

General Partner

Question 6

Tax Consequences:
- Pass-Through to Clients of Income/Losses

Is this a Limited or General Partner?

Answer 6

Limited Partner

Question 7

Fiduciary Duty:
- Yes but only to Limited Partners

Is this a Limited or General Partner?

Answer 7

General Partner

Question 8

Fiduciary Duty:
- None

Is this a Limited or General Partner?

Answer 8

Limited Partner

Question 9

Competition:
- Prohibited from Competing

Is this a Limited or General Partner?

Answer 9

General Partner (Usually Signs a Non-Compete Contract)

Question 10

Competition:
- No Restrictions from Competing

Is this a Limited or General Partner?

Answer 10

Limited Partner