What is the effect of a limited partner making a personal guarantee on behalf of the limited partnership?
A) The limited partner will be considered a general partner for liability purposes.
B) The guarantee is void, because it contradicts the concept of limited liability.
C) The guarantee will create liability for the general partners, because they have unlimited liability.
D) The limited partner will be held liable on the guarantee up to the amount of his investment in the limited partnership.
E) The limited partner will be liable under the terms of the guarantee, but will otherwise continue to be treated as a limited partner.
Correct Answer:
Verified
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