Andre invested $100,000 in a partnership with Erik and Louis. Andre's contract with the partnership states he will receive a portion of partnership profits, but he will be liable for partnership's debts only to the extent of the $100,000 he invested. Andre is:
A) a subpartner.
B) a dormant partner.
C) a limited partner.
D) an aggregate partner.

Question

Quizplus · Accepted Answer

Andre is a limited partner because his liability for the partnership's debts is limited to the amount he invested, which is a characteristic of limited partners.

Andre Invested $100,000 in a Partnership with Erik and Louis