A, B and C formed a limited partnership. They named their partnership AB&C. In 2008, the firm incurred an indebtedness of ₱5M. A suit was filed for the recovery of debt. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

In a limited partnership, at least one partner must be a general partner with unlimited liability, and the limited partners have liability only up to the extent of their contributions. However, if the partnership fails to meet the legal requirements for a limited partnership, such as properly registering as a limited partnership or correctly indicating its limited nature in its name, all partners may be treated as general partners, making them liable for the debts of the partnership. The statement does not provide evidence that the partnership was properly constituted as a limited partnership, especially with the omission of "limited" in the name, which could lead to all partners being liable as general partners.

A, B and C Formed a Limited Partnership