In a limited partnership, limited partners are not responsible for the debts of the firm if they engage in management activities.

Question

Quizplus · Accepted Answer

Limited partners are not liable for the debts of the firm as long as they do not participate in management activities. However, if a limited partner takes on a management role, they can become liable for the debts and obligations of the partnership.

In a Limited Partnership, Limited Partners Are Not Responsible for the Debts