Question

A master limited partnership (MLP) is:

A. not traded on the stock exchanges.
B. pays corporate income taxes.
C. taxed like a partnership.
D. the corporate form of choice for small groups of individuals.

Answer 1

A master limited partnership (MLP) is a type of partnership that is taxed like a partnership but traded on the stock exchanges. It combines the tax advantages of a partnership with the liquidity of publicly traded companies.

Step-by-step explanation:

A master limited partnership (MLP) is a type of partnership that is taxed like a partnership but traded on the stock exchanges. It is a business structure that combines the tax advantages of a partnership with the liquidity of publicly traded companies. MLPs are commonly used in industries such as energy, real estate, and natural resources.