Ruben invested $40,000 in a partnership with Clark and Louis. Ruben's contract with the partnership states he will receive a portion of partnership profits, but he will be liable for partnership's debts only to the extent of the $40,000 he invested. Ruben is:
A) a general partner.
B) a dormant partner.
C) a limited partner.
D) an aggregate partner.

Question

Quizplus · Accepted Answer

Ruben is a limited partner because he receives a portion of the partnership's profits and his liability for the partnership's debts is limited to the extent of his investment, which is a characteristic of limited partners.

Ruben Invested $40,000 in a Partnership with Clark and Louis