Which of the following is true about limited partnerships?

Question

Quizplus · Accepted Answer

Limited partnerships are a legal way to raise venture capital. They involve at least one general partner who manages the company and is personally liable for its debts, and one or more limited partners who contribute capital but are not involved in management and have limited liability for the company's debts. Limited partnerships are often used by venture capitalists to invest in high-risk startups or other projects because they allow investors to limit their downside risk while still participating in the potential upside if the project is successful.

Which of the Following Is True About Limited Partnerships