Asked by shakif seymour on Jul 01, 2024
Verified
A general partner may also be a limited partner and thereby also share in profits and distributions as a limited partner.
General Partner
In a partnership, a party who assumes full liability for the partnership's debts and responsibilities.
Limited Partner
A type of investor in a partnership who has limited liability and is not involved in the day-to-day management of the business.
Profits
The financial gain obtained after subtracting all expenses, costs, and taxes from revenue.
- Absorb the legal distinctions characterizing general partners in comparison to limited partners, especially regarding their contributions, entitlements, and accountabilities.
Verified Answer
BS
Bilal Siddiqui6 days ago
Final Answer :
True
Explanation :
A general partner can also invest as a limited partner in the same partnership, sharing in profits and distributions according to the terms agreed upon for limited partners, in addition to their responsibilities and benefits as a general partner.
Learning Objectives
- Absorb the legal distinctions characterizing general partners in comparison to limited partners, especially regarding their contributions, entitlements, and accountabilities.
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