In a limited partnership, the limited partner:
A) cannot actively participate in the management of the partnership.
B) has the right to participate fully in managing the partnership.
C) can only invest his or her money in the business for a limited time period.
D) cannot own more than 10 percent of the company's stock.

Question

Quizplus · Accepted Answer

As the name suggests, a limited partner has limited liability, which means they are not liable for the partnership's debts beyond their initial investment. However, in exchange for this limited liability, the limited partner cannot actively participate in the management of the partnership. Only the general partner(s) can manage the business operations.

In a Limited Partnership, the Limited Partner