Which of the following statements about partnership and limited liability is (are)true?
A)All the partners in a partnership can have limited liability and general partners in a partnership cannot have limited liability.
B)All the partners in a partnership can have limited liability, general partners in a partnership cannot have limited liability, and general partners in a partnership can be corporations.
C)General partners in a partnership cannot have limited liability, general partners in a partnership can be corporations, and only limited partners in a partnership can have limited liability.
D)All the partners in a partnership can have limited liability and general partners in a partnership can be corporations.

Question

Quizplus · Accepted Answer

General partners in a partnership cannot have limited liability, general partners in a partnership can be corporations, and only limited partners in a partnership can have limited liability. This is the traditional structure of a limited partnership where there are both general partners and limited partners. The general partners are fully liable for the partnership debts and obligations, while the limited partners have limited liability and are only liable for their capital contributions. General partners can be corporations, but they still have unlimited liability.

Which of the Following Statements About Partnership and Limited Liability