Which of the following statements is TRUE about a limited partnership?
A)The partners all share equally in the profit or losses of the partnership.
B)The general partner takes on greater liability than the limited partners.
C)In a limited partnership,all partners are considered to be limited partners.
D)The general partner has first claim on the profit of the partnership.

Question

Quizplus · Accepted Answer

In a limited partnership, the general partner takes on greater liability than the limited partners. This means that the general partner is personally responsible for the debts and obligations of the partnership, while the liability of limited partners is limited to the amount of their investment in the partnership. The other statements are incorrect.

Which of the Following Statements Is TRUE About a Limited