Which of the following statements about limited partnerships is incorrect?
A) A limited partnership is a modified form of a general partnership.
B) Limited partnerships are common in real estate and oil and gas exploration.
C) A limited partnership is usually formed to raise money or to spread out the risk of a venture without forming a corporation.
D) Both the limited partners and the general partners are responsible for the debts and obligations of the partnership.
E) A limited partnership contains two classes of owners-general and limited partners.

Question

Quizplus · Accepted Answer

Limited partners are not responsible for the debts and obligations of the partnership beyond their initial investment. This is one of the main advantages of a limited partnership over a general partnership.

Which of the Following Statements About Limited Partnerships Is Incorrect