In which type of partnership is the liability of a partner limited to the amount of the partner's investment?
A) limited partnership
B) unlimited partnership
C) restricted partnership
D) unrestricted partnership

Question

Quizplus · Accepted Answer

In a limited partnership, there are two types of partners: general partners, who manage the business and are personally liable for its debts, and limited partners, whose liability is limited to the amount of their investment in the partnership. This structure allows investors to participate in the profits of the partnership without being liable for its debts beyond their initial investment.

In Which Type of Partnership Is the Liability of a Partner