A partnership that has two classes of partners,general and limited,where the limited partners have no personal liability beyond the amounts they invest in the partnership and no active role in the partnership except as specified in the partnership agreement,is a:
A)Mutual agency partnership
B)Limited partnership
C)Limited liability partnership
D)General partnership
E)Limited liability corporation

Question

Quizplus · Accepted Answer

A limited partnership is a type of partnership where there are two classes of partners - general and limited. Limited partners have no personal liability beyond the amounts they invest in the partnership and no active role in the partnership except as specified in the partnership agreement. This is different from a general partnership where all partners have unlimited liability and are actively involved in the management of the partnership.

A Partnership That Has Two Classes of Partners,general and Limited,where