Which of the Following Statements Is True Regarding the Liability

question 93

Multiple Choice

Which of the following statements is true regarding the liability of the partners in a limited partnership?

• A) Both the limited and general partners have unlimited liability for partnership debts.
• B) The limited partners have limited liability and the general partners have unlimited liability for partnership debts.
• C) The limited partners have unlimited liability, and the general partners have limited liability, for partnership debts.
• D) If a corporation is a partner, its shareholders have unlimited liability for partnership debts.

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.

Tax Rate

The percentage at which an individual or corporation is taxed.

Installment Note Payable

A liability that represents a loan that is repaid in regular payments over a set period of time.

Accrue Interest

The process of recognizing interest income or expense that has been earned or incurred but not yet received or paid.