In a general partnership,which of the following is true of limited partners?
A)Limited partners take an active part in the management of the firm.
B)A limited partner's nonpartnership property can be used to satisfy any debts owed by the firm.
C)Limited partners are nonparticipating investors.
D)Limited partners have unlimited liability for the firm's debts.

Question

Quizplus · Accepted Answer

Limited partners are passive investors and do not take an active part in the management of the firm. They have limited liability for the firm's debts, meaning their liability is limited to the amount of their capital contribution. Additionally, a limited partner's personal assets cannot be used to satisfy any debts owed by the firm beyond their capital contribution. Therefore, option B is not correct. Option D is also incorrect as limited partners have limited liability.

In a General Partnership,which of the Following Is True of Limited