Which of the following is a distinguishing feature of a limited partnership?
A) The liability of each partner is limited to their capital contributions.
B) The liability of some partners is limited to their capital contributions.
C) Limited partners may participate in the day-to-day management of the firm.
D) Limited partnerships are only available to professionals.

Question

Quizplus · Accepted Answer

In a limited partnership, there are two types of partners: general partners, who manage the business and have unlimited liability, and limited partners, whose liability is limited to the amount of their investment in the partnership. This structure allows for investment by partners who prefer not to be involved in the day-to-day management of the business and wish to limit their liability.

Which of the Following Is a Distinguishing Feature of a Limited