Asked by
Ahmad Anees
on Nov 10, 2024
Verified
Which of the following statements is correct with respect to limited partnerships?
A) A limited partnership is created where all of the partners state in the partnership agreement that they will not be responsible for debts arising out of the partnership business and register as such with the government.
B) A limited partner is totally protected and can lose no money.
C) A limited partner can lose his status as a limited partner if he participates in the management of the business.
D) There can be no limited partnerships in Canada. If limited liability is desired, a corporation must be created.
E) There can only be one limited partner in any partnership, no matter how many partners are involved.
Limited Partnership
is a form of partnership characterized by having one or more general partners with unlimited liability, and one or more limited partners whose liability is limited to the amount of their investment.
Management Participation
The involvement or engagement of managerial staff in the planning and decision-making processes of a business or organization.
Liability
The state of being legally responsible for something, particularly in terms of debts or legal obligations.
- Identify the distinctions and respective liabilities between general and limited partnerships.
Verified Answer
AP
Learning Objectives
- Identify the distinctions and respective liabilities between general and limited partnerships.