By being too involved in the business operation,limited partners can lose their limited liability status.

Question

Quizplus · Accepted Answer

Limited partners are only liable for the amount of their investment and not responsible for the business's debts and obligations. However, if they participate in the management and operation of the business, they risk losing their limited liability status and becoming personally liable for the business's debts and obligations. This can happen if they exercise too much control over the business or make significant management decisions.

By Being Too Involved in the Business Operation,limited Partners Can