Asked by William Cordero on Jun 24, 2024
Verified
Discuss the duties of general partners to limited partners.
General Partners
Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.
Limited Partners
Individuals in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.
- Outline the duties and legal accountabilities of partners in a limited partnership.
- Analyze the differences between general and limited partners, especially in terms of liability and management participation.
Verified Answer
JS
Jaspreet SinghJun 28, 2024
Final Answer :
General partners have a fiduciary duty to limited partners. Under the RULPA, a general partner owes the limited partners a duty not to be grossly negligent in the management of the business. However, some courts have imposed upon general partners a higher duty of care toward limited partners.
Learning Objectives
- Outline the duties and legal accountabilities of partners in a limited partnership.
- Analyze the differences between general and limited partners, especially in terms of liability and management participation.