BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Limited partners are not personally liable. This means that a limited partner can’t be forced to pay off business debts or claims with personal assets. A limited partner, however, can lose his or her financial investment in the business.
Detailed explanation-2: -A limited partner has no right to manage the business or to act as its agent, but he does have the right to vote on several important matters, such as admitting new partners. If a limited partner does manage the business, he may incur unlimited liability for partnership obligations.
Detailed explanation-3: -A limited partner, also known as a silent partner, is an investor and not a day-to-day manager of the business. The limited partner’s liability cannot exceed the amount that they invested in the business. A limited partnership by definition has at least one general partner and one limited partner.
Detailed explanation-4: -Which of the following is true of general and limited partners in a limited partnership? Limited partners are not liable for partnership debts.