cathyfrawley
cathyfrawley
15.04.2021 • 
Business

A Reporting Company is the sole general partner of the Legal Entity. The limited partnership capi-tal was contributed by unaffiliated individual investors recruited by a regional boutique investment bank. The Reporting Company is paid a $24,500 management fee. The limited partners expect the partnership to be highly successful over the next five years. The investment bank estimated that the distribution of income to these investors should be at least $57,500 during that time period. What is the maximum amount of expected losses that the Legal Entity can expect to sustain without being considered a variable interest entity (VIE)

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