In a limited partnership,
A)each limited partner's liability is limited to his net worth.
B)each limited partner's liability is limited to his annual salary.
C)each limited partner's liability is limited to the amount he/she invested.
D)there is no limitation on liability; only a limitation on what the partner can earn.
E)limitations are placed on both the salary and personal liability of each limited partner.

Question

Quizplus · Accepted Answer

In a limited partnership, the liability of each limited partner is limited to the amount of their investment in the partnership. This means that they are not personally liable for the debts and obligations of the partnership beyond the amount they have invested. The general partner, however, does have unlimited liability for the partnership's debts and is responsible for managing the partnership.

In a Limited Partnership