Which of the following is true of general and limited partners in a limited partnership?

Question

Quizplus · Accepted Answer

In a limited partnership, the general partner is responsible for managing the partnership and is personally liable for the partnership's debts. The limited partner, on the other hand, is not involved in managing the partnership and is only liable for debts up to the amount of their capital contribution. Therefore, option D is correct. Option A is incorrect as limited partners are required to make an annual capital investment while general partners are responsible for managerial functions.  Option B is incorrect as general partners are personally liable for partnership debts. Option C is incorrect as general partners are required to manage the partnership and may have to invest capital as well.

Which of the Following Is True of General and Limited