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 the amount he put into the partnership.
C)each limited partner's liability is limited to his annual salary.
D)there is no limitation on liability; only a limitation on what the partner can earn.
E)None of the above.

Question

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In a limited partnership, each limited partner's liability is limited to the amount he or she invested in the partnership. This means that the limited partner cannot be held personally responsible for any debts or liabilities that the partnership incurs beyond their investment. However, it is important to note that the general partner(s) in a limited partnership do have unlimited liability for the partnership's debts and obligations.

In a Limited Partnership