Asked by
Deauntrae Lewis
on Nov 21, 2024
Verified
Which of the following is true about limited partners?
A) A limited partner has no right to participate in management, has limited liability up to the amount of his or her assumption of debt, and is an agent of the partnership.
B) A limited partner has a limited right to participate in management, has limited liability up to the amount of capital, and is not an agent of the partnership.
C) A limited partner has no right to participate in management, has limited liability up to the amount of his or her assumption of debt, and is not an agent of the partnership.
D) A limited partner has no right to participate in management, has limited liability up to the amount of capital, and is not an agent of the partnership.
E) A limited partner has a limited right to participate in management, has limited liability up to the amount of capital, and is an agent of the partnership.
Limited Partner
An investor in a partnership whose liability is limited to the amount of the investment and who does not participate in day-to-day management.
Management Rights
The powers and authority given to managers or executives to make decisions and direct operations within an organization.
Limited Liability
A legal principle that limits an investor's loss in a business venture to the amount of capital they have invested, protecting personal assets from business debts.
- Identify the differences in management and liability arrangements across partnership types like general and limited.
Verified Answer
MR
Learning Objectives
- Identify the differences in management and liability arrangements across partnership types like general and limited.