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1.
Cash flows from master limited partnerships tend to be _______.
Stable. MLPs tend to be be very stable and produce consistent cash flows over time.
2.
If you invest in a master limited partnership that is held in a retirement account, you will not need to pay taxes on your earnings.
False. You may have to pay taxes anyway. Earnings are not generally tax-deferred.
3.
For tax purposes, dividends from real estate investment trusts are allocated to _______.
All of the above. The situations for each of these returns differ.
4.
What will eventually happen to the distributions that royalty trusts pay their investors?
They will disappear. Resources are finite; therefore, they will run out eventually.
5.
Which of the following is not an advantage of royalty trusts?
Stable cash flows. Cash flows from royalty trusts are not predictable. Royalty trusts are affected by swings in production levels and commodity prices.
