Which one of the following best describes the primary advantage of being a limited partner rather than a general partner?
A)entitlement to a larger portion of the partnership's income
B)ability to manage the day-to-day affairs of the business
C)no potential financial loss
D)greater management responsibility
E)liability for firm debts limited to the capital invested

Question

Quizplus · Accepted Answer

The primary advantage of being a limited partner is that liability for firm debts is limited to the capital invested. This means that a limited partner cannot be held personally responsible for the debts of the partnership beyond their original investment. In contrast, a general partner can be held personally liable for the partnership's debts.

Which One of the Following Best Describes the Primary Advantage