1. Limited partnership arrangements alleviate which traditional problem associated with real estate investments?

1) Low tolerance for risk

2) High initial investment required

3) Need for portfolio liquidity

4) High taxes on salary and business income

2. A major drawback of a corporation (other than a Subchapter-S, or Tax Option corporation) is:

1) corporations are not tax conduits.

2) shareholders have limited liability.

3) shareholders participate in management decisions.

4) none of the above.