In a limited partnership,general partners:
A)take an active part in management,but have unlimited liability for the firm's debts.
B)take an active part in management,but have no liability for the firm's debts.
C)take an active part in management,but are nonparticipating investors.
D)take no part in management,but contribute cash or property.

Question

Quizplus · Accepted Answer

In a limited partnership, there are both general partners and limited partners. General partners take an active role in managing the partnership and have unlimited liability for the partnership's debts. Limited partners, on the other hand, do not take an active role in management and have limited liability for the partnership's debts. Therefore, choice A is the correct answer.

In a Limited Partnership,general Partners