Which of the following is true regarding the liability of the partners in a limited partnership?

Question

Quizplus · Accepted Answer

In a limited partnership, the limited partners have limited liability and are not personally responsible for the partnership debts beyond their investment in the partnership, while the general partners have unlimited liability and are personally responsible for the partnership debts. Therefore, choice C is the correct statement. Choice A is incorrect because it implies that both types of partners have unlimited liability, which is not true for limited partners. Choice B is incorrect because limited partners do have limited liability. Choice D is incorrect because limited partners are not personally responsible for the partnership debts. Choice E is also incorrect as it mentions the liability of shareholders when they are not directly involved in the partnership.

Which of the Following Is True Regarding the Liability of the Partners