From a risk standpoint, a shareholder or limited partner is better off than a general partner.

Question

Quizplus · Accepted Answer

Shareholders and limited partners have limited liability, meaning their financial risk is limited to the amount they have invested in the company. General partners, on the other hand, have unlimited liability and are personally responsible for the debts and obligations of the company. Therefore, from a risk standpoint, shareholders and limited partners are better off than general partners.

From a Risk Standpoint, a Shareholder or Limited Partner Is