When forming a limited partnership,it is critical to know that:
A)general partners have limited liability for the firm's debts.
B)a certificate of limited partnership must be filed with the Secretary of State's office.
C)limited partners are participating investors.
D)general partners can only take a limited part in the management of the firm.

Question

Quizplus · Accepted Answer

General partners have unlimited liability for the firm's debts, not limited. Limited partners are the ones with limited liability and typically do not participate in the management of the firm, which contradicts choices A, C, and D. The correct statement is B, as forming a limited partnership usually requires filing a certificate of limited partnership with the Secretary of State or similar official body to legally establish the entity.

When Forming a Limited Partnership,it Is Critical to Know That