What is the fundamental difference found in a limited partnership?
A) Only one partner is responsible for all of the partnership's losses
B) Both partners are responsible for all of the partnership's losses
C) Both partners are protected from being responsible for all of the partnership's losses
D) None of the above

Question

Quizplus · Accepted Answer

The fundamental difference found in a limited partnership is that both partners are protected from being responsible for all of the partnership's losses. In a limited partnership, there are two types of partners: general partners and limited partners. The general partners are responsible for managing the partnership and are personally liable for all of the partnership's debts and obligations. On the other hand, limited partners have limited liability and are only liable for the amount of their investment in the partnership. This means that they cannot lose more than the amount of money they put into the partnership, even if the partnership incurs significant losses.

What Is the Fundamental Difference Found in a Limited Partnership