Which of the following statements regarding limited partnerships is TRUE?

a. A general partner's liability is limited by the amount of their investment.

b. There is no limit on a limited partner's liability.

c. A limited partner is not liable until all the assets of the general partners have been exhausted.

d. A limited partner's liability is limited by the amount of their investment

Question

Karla Branch

Business

10 November, 01:13

Which of the following statements regarding limited partnerships is TRUE?

a. A general partner's liability is limited by the amount of their investment.

b. There is no limit on a limited partner's liability.

c. A limited partner is not liable until all the assets of the general partners have been exhausted.

d. A limited partner's liability is limited by the amount of their investment

+2

Answers (1)

Know the Answer?

Julia Sandoval · Answer 1

Answer: The following statements regarding limited partnerships is true: A limited partner's liability is limited by the amount of their investment.

A Limited Partnership is a relationship existing of general partner, who manages the organization and has outright personal liability for the financial obligation of the Limited Partnership, and a limited partner, who has controlled financial obligation but cannot act in administration.

Therefore option (d) is correct.