A(n)________ invests money in a partnership but is liable only to the extent of his/her investment.

Question

Quizplus · Accepted Answer

A limited partner is an investor in a partnership who contributes capital but has limited liability. This means that they are only responsible for the amount of money they invested in the partnership and are not personally liable for any debts or losses incurred by the partnership. General partners, on the other hand, are actively involved in the management of the partnership and have unlimited liability, meaning they are personally responsible for any debts or losses the partnership may incur. Officers and agents are typically associated with corporations and not partnerships.

A(n)________ Invests Money in a Partnership but Is Liable Only