Asked by OfficialAuzzi Clitnovici on May 02, 2024
Verified
Limited partners have limited liability for partnership obligations.
Limited Liability
Limited liability is a legal structure that restricts an investor's or owner's loss to the amount invested, protecting personal assets from business debts and claims.
Limited Partners
Investors in a limited partnership who contribute capital but have limited liabilities and are not involved in day-to-day management of the business.
- Understand the liability of limited partners for partnership obligations.
Verified Answer
KS
KASHISH SHARMAMay 02, 2024
Final Answer :
True
Explanation :
Limited partners have limited liability, meaning they are only liable up to the amount of their investment in the partnership and are not personally responsible for partnership debts beyond that.
Learning Objectives
- Understand the liability of limited partners for partnership obligations.
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