Which of the following is true of a general partner of a limited liability partnership (LLP)?
A)A general partner of a limited liability partnership (LLP) is fully personally liable for all business debts.
B)A general partner of a limited liability partnership (LLP) cannot participate in the management of the business.
C)A general partner of a limited liability partnership (LLP) is considered as an investor only.
D)A general partner of a limited liability partnership (LLP) is liable only to the extent of his/her investment in the partnership.
E)A general partner of a limited liability partnership (LLP) is taxed for the limited partners' share of the partnership's income.

Question

Quizplus · Accepted Answer

A general partner of a limited liability partnership (LLP) is fully personally liable for all business debts. This means that the general partner's personal assets can be used to pay off the partnership's debts if the partnership is unable to pay them. However, limited partners in an LLP have limited liability, meaning they are only liable for the amount of their investment in the partnership. Therefore, option D is incorrect. Option B is also incorrect because a general partner of an LLP can participate in the management of the business. Option C is incorrect because a general partner is more than just an investor; they have management responsibilities and personal liability. Option E is also incorrect because income taxation for partners is based on their individual ownership percentage, not on the limited partners' share.

Which of the Following Is True of a General Partner