Cherry Creek Development, LP, is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals. A Cherry Creek limited partner loses his or her limited liability if he or she a. invests in a project that Cherry Creek has declined. b. votes to sell or dissolve the firm. c. does not participate in the firm's management. d. participates in the firm's management. Hide Feedback

Question

Andy Mays

Business

26 November, 11:01

Cherry Creek Development, LP, is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals. A Cherry Creek limited partner loses his or her limited liability if he or she a. invests in a project that Cherry Creek has declined. b. votes to sell or dissolve the firm. c. does not participate in the firm's management. d. participates in the firm's management. Hide Feedback

+3

Answers (1)

Know the Answer?

Harper Simon · Answer 1

d. participates in the firm's management.

Explanation:

A limited partnership is a form of business ownership with two or more partners. Limited partnerships are made up of general partners and limited partners.

The general partner manages the daily business operations. He makes investment decisions on behalf of the enterprise. He has unlimited liabilities to the debts and the liabilities of the business.

A limited partner is also known as silent partner. He does not take part in the management of the business. He has no voting rights. His liability is limited to the total amount of his investments