In limited partnerships:

Question

Quizplus · Accepted Answer

In limited partnerships, the sponsoring company typically acts as the general partner and manages the day-to-day operations. Limited partners, on the other hand, contribute capital but have limited liability for any losses incurred by the partnership. Therefore, option A is incorrect. Limited partnerships can offer tax benefits, such as pass-through taxation, to partners, making option C incorrect. As for option D, the sponsoring company may retain rights to use any base technology for other products, but this is not a characteristic specific to limited partnerships.

In Limited Partnerships