Development LP is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals, including Ethan. Ethan loses his limited liability if he
A)participates in the firm's management.
B)does not participate in the firm's management.
C)invests in a project that the firm has declined.
D)votes to sell or dissolve the firm.

Question

Quizplus · Accepted Answer

Limited partners, like Ethan, maintain their limited liability status as long as they do not participate in the management of the partnership. Engaging in management activities can result in losing their limited liability protection.

Development LP Is a Limited Partnership That Invests in Residential