In the context of limited partnerships, which of the following statements is true of limited partners?
A) Their ultimate authority in the business often compels them to perform tasks or make decisions in areas where they lack expertise.
B) They assume unlimited personal liability for debts incurred by the company.
C) They are not only liable for their own mistakes but also for that of their partners.
D) Their personal wealth is not at risk as long as they do not actively participate in managing the company.

Question

Quizplus · Accepted Answer

Limited partners have limited liability, meaning their personal assets are protected as long as they do not engage in the management of the business.

In the Context of Limited Partnerships, Which of the Following