Within a limited partnership context,what are the conditions on a limited partner?

Question

Quizplus · Accepted Answer

The condition on a limited partner is that they may not take any active role in the operation of the business. Limited partners are passive investors who contribute capital but do not have any managerial control or decision-making authority in the business. Option A is incorrect as there is no specific limit on the amount of capital that a limited partner can contribute. Option B is also incorrect as there is no legal limit on the number of limited partners that a firm can have. Option C is incorrect as it is not a condition on a limited partner, and there is no restriction on a limited partner's ability to serve in a managerial role in another firm.

Within a Limited Partnership Context,what Are the Conditions on a Limited