Which of the following statements is (are)true of limited partnerships?
A)Limited partners enjoy limited liability but do not participate in management.
B)Generally, limited partners put up most of the money.
C)Generally, limited partners are institutional investors.
D)All of these statements are true of limited partnerships.

Question

Quizplus · Accepted Answer

All the statements provided are characteristics of limited partnerships. Limited partners do indeed enjoy limited liability and typically do not participate in the management of the partnership, which is handled by the general partners. It is also common for limited partners to contribute the majority of the capital, and often, these partners are institutional investors.

Which of the Following Statements Is (Are)true of Limited Partnerships