Which of the following statements regarding limited partnership is TRUE?
A)There is no limit on a limited partner's liability.
B)A limited partner is not liable until all the assets of the general partners have been exhausted.
C)A general partner's liability is limited by the amount of their investment.
D)A limited partner's liability is limited by the amount of their investment.

Question

Quizplus · Accepted Answer

The true statement regarding limited partnership is that a limited partner's liability is limited by the amount of their investment. This means that their personal assets are not at risk and they are only responsible for the amount they invested in the business. The other statements are incorrect - there is a limit on a limited partner's liability, a limited partner is not liable until all the assets of the general partner have been exhausted, and a general partner's liability is not limited by the amount of their investment.

Which of the Following Statements Regarding Limited Partnership Is TRUE