Sean is one of several general partners who own Pints and Cans, a small chain of bar and grills located in Illinois and Indiana. Sean is interested in converting the partnership into a master limited partnership. If he convinces other partners to go along with his idea, Pints and Cans will
A) offer shares of ownership that are traded on a stock exchange much like a corporation.
B) pay its taxes like a corporation.
C) begin to operate much like a sole proprietorship.
D) have to change its name to include the term Ltd. in its title to indicate its owners have limited liability.

Question

Quizplus · Accepted Answer

Master limited partnerships act much like corporations with shares of ownership traded on the stock exchanges, but they are taxed like partnerships, where each owner adds his/her dividends to other personal income earned and pays taxes at the owner's personal income tax rate.

Sean Is One of Several General Partners Who Own Pints