Limited partners must take an active role in the operations of the firm.

Name: Limited partners must take an active role in the operations of the firm.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Limited partners are passive investors and are not involved in the day-to-day operations of the firm. They only contribute capital to the business and share in profits or losses based on the terms of the partnership agreement. The general partner assumes the responsibility of managing the business.

Limited Partners Must Take an Active Role in the Operations