A limited partner who permits his or her name to be used as part of the partnership name automatically becomes liable as a general partner.

Question

Quizplus · Accepted Answer

By allowing their name to be used as part of the partnership name, a limited partner is taking on a more active role in the business and may be seen as holding themselves out as a general partner. Therefore, they can be held liable as a general partner in the eyes of the law.

A Limited Partner Who Permits His or Her Name to Be