Asked by
Jacob Lancaster
on Nov 10, 2024
Verified
Which of the following is incorrect with respect to the law governing limited partnerships?
A) Limited partners' liability only extends to the amount of money they have invested in the partnership.
B) Limited partners, once registered as such, are assured of limited liability.
C) Limited partners can lose their limited status by participating in management.
D) Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership.
E) Limited partners can lose their limited status by failing to register as such.
Limited Partnerships
A business structure where some partners have limited liabilities to the business's debts and obligations, typically proportional to their investment.
Limited Liability
A legal structure that limits the financial responsibility of business owners to the amount they have invested in the company, protecting personal assets from business debts.
Management Participation
The involvement or active engagement of management in the day-to-day operations and decision-making processes of a business.
- Distinguish between general and limited partnerships and their respective liabilities.
Verified Answer
HR
Learning Objectives
- Distinguish between general and limited partnerships and their respective liabilities.