Limited partners are best described as ...partners that receive a smaller portion of the partnership's profits.partners in a general partnership.partners that make only a limited financial contribution.investors in a partnership.
Question
Limited partners are best described as ...partners that receive a smaller portion of the partnership's profits.partners in a general partnership.partners that make only a limited financial contribution.investors in a partnership.
Solution
Limited partners are best described as investors in a partnership. They contribute capital to the partnership but have limited liability and do not participate in the day-to-day management of the business. This means they are only liable for the partnership's debts up to the amount they have invested. Their personal assets are not at risk if the partnership cannot meet its financial obligations.
Similar Questions
How does a limited partner differ from a general partner in a limited partnership?Limited partners have no management authority.Limited partners have unlimited liability.Limited partners share equal responsibility.Limited partners can make decisions for the business
A general partner is one whose liability to the partnership obligations extends to his personal contribution only.Select one:TrueFalse
A limited partnership is composed of at least two or more limited partners.Group of answer choicesTrueFalse
A limited partnership should add the word “Limited” in the name of the partnership.
A partnership is a form of business organization with only one proprietary owner, a single individual who conducts business under his own name or a business name.Group of answer choicesTrueFalse
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