The partner who can lose only what he or she has invested in a business is the
A) general partner.
B) sole proprietor.
C) manager.
D) employee.
E) limited partner.

Question

Quizplus · Accepted Answer

The partner who can lose only what he or she has invested in a business is the limited partner. In a limited partnership, the limited partner's liability is limited to the amount of investment they have made in the partnership. The other partners, such as the general partner, are liable for the partnership's debts and obligations beyond just their investment. Sole proprietors and managers also have unlimited liability for the debts and obligations of the business. Employees typically have no financial investment in the business and therefore have no liability for its debts.

The Partner Who Can Lose Only What He or She