John,Sam,and Mark decided to form a limited partnership (LP)with John being the general partner,and Sam and Mark as limited partners.The LP is sued and the court awards $100,000 against the LP.All three partners are jointly and severally liable.

Question

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In a limited partnership (LP), only the general partner (in this case, John) is personally liable for the debts and obligations of the partnership. Limited partners (Sam and Mark) have liability limited to the extent of their investment in the LP, unless they take part in controlling the business.

John,Sam,and Mark Decided to Form a Limited Partnership (LP)with John