Which of the following is true of master limited partnerships? A. Master limited partnerships are comprised of sole proprietorships or partnerships that agree to work together for their common benefit. B. Master limited partnerships are typically formed by groups of doctors, lawyers accountants, and other professionals. C. Master limited partnerships sell partnership interests to investors on public markets like the New York Stock Exchange D. Shares of the master limited partnership are held by only a few people and are not available for sale to the publiC. E. Master limited partnerships are subject to double taxation

## Step 1<br />A master limited partnership (MLP) is a type of business organization that combines the tax benefits of a partnership with the liquidity of publicly traded corporations. This means that the MLP structure allows for the creation of a partnership that can be traded on public markets, similar to stocks.<br /><br />## Step 2<br />Option A is incorrect because MLPs are not comprised of sole proprietorships or partnerships working together. They are a separate legal entity that combines the characteristics of a corporation and a partnership.<br /><br />## Step 3<br />Option B is incorrect because MLPs are not typically formed by groups of doctors, lawyers, accountants, and other professionals. They are usually formed by businesses in the energy sector, such as oil and gas companies.<br /><br />## Step 4<br />Option C is correct because MLPs sell partnership interests to investors on public markets like the New York Stock Exchange. This allows for the liquidity of the partnership, similar to stocks.<br /><br />## Step 5<br />Option D is incorrect because the shares of an MLP are not held by only a few people. They are publicly traded on stock exchanges, which means they are available for sale to the public.<br /><br />## Step 6<br />Option E is incorrect because MLPs are not subject to double taxation. They avoid double taxation by passing income through to the partners, who then report their share of income on their personal tax returns.