Solved

What Is the Effect of a Limited Partner Making a Personal

Question 125

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents