A limited partner's financial obligation to the partnership may be increased if the:

Question

Quizplus · Accepted Answer

Limited partners have limited liability and are only responsible for the debts and obligations of the partnership up to the amount of their investment. However, if a limited partner takes an active role in the management of the partnership, they could be considered a general partner and may be personally liable for the debts and obligations of the partnership. This means their financial obligation to the partnership could be increased. The other options (A and C) do not directly relate to a limited partner's financial obligation.

A Limited Partner's Financial Obligation to the Partnership May Be