A limited partnership provides limited liability to
A) all general partners.
B) only limited partners responsible for day to day management of the firm.
C) only to limited partners who do not participate in the management of the business.
D) all partners.

Question

Quizplus · Accepted Answer

Limited partners have limited liability in that they are only liable for the amount of their investment and are not responsible for the debts and obligations of the partnership. However, if a limited partner is actively involved in the management of the business, they may lose their limited liability protection. Therefore, limited liability only applies to limited partners who do not participate in the management of the business. General partners, on the other hand, have unlimited personal liability for the debts and obligations of the partnership.

A Limited Partnership Provides Limited Liability to