Which of the following statements about limited partnerships is incorrect?
A) A limited partnership is a modified form of a general partnership.
B) Limited partnerships are common in real estate and oil and gas exploration.
C) A limited partnership is usually formed to raise money or to spread out the risk of a venture without forming a corporation.
D) Both the limited partners and the general partners are responsible for the debts and obligations of the partnership.
E) A limited partnership contains two classes of owners: general partners and limited partners.

Question

Quizplus · Accepted Answer

This statement is incorrect as only the general partners are responsible for the debts and obligations of the limited partnership. Limited partners have limited liability and are only responsible for the debts up to the amount of their investment in the partnership.

Which of the Following Statements About Limited Partnerships Is Incorrect