Which is not true as to a limited partnership?
A) The general partner has only a duty of care to the firm, not a fiduciary duty.
B) Limited partners' names cannot usually be used in the firm name.
C) Limited partners need not contribute services to the firm.
D) Limited partners are generally insulated from person liability beyond their contributions.
E) The firm's name must indicate it is a limited partnership.

Question

Quizplus · Accepted Answer

The general partner of a limited partnership typically has both a duty of care and a fiduciary duty to the firm.

Answer: B
 This statement is true. Limited partners' names are typically not included in the firm name to avoid suggesting they are responsible for the firm's management.

Answer: C
 Limited partners are not required to contribute services to the firm. They may contribute only capital.

Answer: D
 Limited partners are generally not personally liable beyond their contributions to the firm.

Answer: E
 This statement is true. The firm's name must include the words "limited partnership" or the abbreviation "LP" to indicate its status.

Which Is Not True as to a Limited Partnership