KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define a limited partnership.
- Explain how each of the factors may impact the suitability of a limited partnership, such as:
- Time horizon
- Risk tolerance
- Investment objective
- Financial situation
- Personal situation
- Tax impact
- Investment management process
- Economic cycle
- Historical performance
- Performance expectations
- Evaluate how each of the factors may impact the suitability of a limited partnership.
- Explain for whom a limited partnership may be suitable.
- Identify that a limited partnership can invest in different types of assets or projects.
- Identify that the risks associated with a limited partnership need to be assessed on a per case basis.
- Identify that investors in a limited partnership cannot participate in the day-to-day operations of the partnership.
- Identify that holding periods may exist when investing in limited partnerships.
- Explain how income earned by a limited partnership is handled when distributed to unitholders of the limited partnership.
- Identify factors that may affect the risk of a limited partnership, such as:
- The risk of the underlying assets that the limited partnership is invested in
- The management of the limited partnership
- Identify the potential tax consequences of a limited partnership.
Glossary of Verbs (mouse over to see definition)
To state exactly the meaning of
To be aware of / to recognize and correctly name / to locate an appropriate resource
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
To reach a conclusion or make a judgement through careful study
To give the meaning of / to construe or understand / to translate orally