Which of the following is incorrect with respect to the law governing limited partnerships?
A) Limited partners' liability only extends to the amount of money they have invested in the partnership.
B) Limited partners, once registered as such, are assured of limited liability.
C) Limited partners can lose their limited status by participating in management.
D) Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership.
E) Limited partners can lose their limited status by failing to register as such.

Question

Quizplus · Accepted Answer

Limited partners are generally assured of limited liability, but this assurance can be compromised if they participate in management, allow their names to be used in the partnership name, or fail to properly register. Thus, simply registering as a limited partner does not guarantee limited liability under all circumstances.

Which of the Following Is Incorrect with Respect to the Law