Which of the Following Statements Is True About the Liability

question 53

Multiple Choice

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

• A) The general partners of a limited partnership have limited personal liability for the debts and obligations of the limited partnership.
• B) The liability of general partners extends to debts that cannot be satisfied with the existing capital of the limited partnership.
• C) Limited partners are personally liable for the debts and obligations of the limited partnership.
• D) A corporation as a general partner has an unlimited liability to the shareholders of the company.

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Definitions:

Unlimited Liability

A legal structure in which the owners of a business are personally responsible for all the debts and obligations of the business, without any limit.

Legal Requirements

Regulations or obligations imposed by law that organizations or individuals must follow.

Governmental Regulation

The laws, rules, and regulations established by government bodies to control activities within various sectors and protect public interests.

Capital Contributions

The money, property, or other assets that an owner or shareholder provides to a business either initially or to support ongoing operations.