Bailey is a limited partner in his company. A general partner in his company is going on an extended vacation and has asked Bailey to run the company while he is gone. If Bailey agrees to do so, he will no longer qualify as a limited partner.

Question

Quizplus · Accepted Answer

Limited partners are passive investors who do not play an active role in running the company. If Bailey agrees to run the company as a general partner, he will be taking an active role in the management of the company and will no longer have limited liability protections.

Bailey Is a Limited Partner in His Company