In a limited partnership,limited partners:
A)play an active role in the management of the firm.
B)do not pay federal income tax on their share of the profits.
C)are passive investors.
D)have unlimited liability for the firm's debts.

Question

Quizplus · Accepted Answer

Limited partners usually have no liability for the obligations of the limited partnership once they have paid their capital contributions to the limited partnership.As a passive investor,a limited partner may use the losses only to offset income from other passive investments.

In a Limited Partnership,limited Partners