A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:
A) general partner.
B) sole proprietor.
C) limited partner.
D) corporate shareholder.
E) zero partner.

Question

Quizplus · Accepted Answer

A limited partner is a type of business partner who is only liable for their investment in the partnership, and their potential financial loss cannot exceed this amount. This is in contrast to a general partner, who may be personally liable for the debts and obligations of the partnership. Sole proprietors and corporate shareholders are not typically considered business partners, and "zero partner" is not a recognized term in business.

A Business Partner Whose Potential Financial Loss in the Partnership