In a limited partnership:
A) Only the limited partners are involved in the daily management of the ﬁrm.
B) Both general and limited partners are involved in the daily management of the ﬁrm.
C) A limited partner is liable only for the amount he/she contributed to the partnership.
D) A general partner is liable only for the amount he/she contributed to the partnership.
E) The income earned is taxed like a corporation.

Question

Quizplus · Accepted Answer

In a limited partnership, only the general partners are involved in the daily management of the firm, while limited partners are passive investors who have limited liability and are only responsible for the amount they contributed to the partnership. This means that they are not involved in the daily management and decision-making of the firm, and therefore have limited risk exposure.

In a Limited Partnership