In the Context of Limited Partnerships, Which of the Following

question 10

Multiple Choice

In the context of limited partnerships, which of the following statements is true of limited partners?

• A) Their ultimate authority in the business often compels them to perform tasks or make decisions in areas where they lack expertise.
• B) They assume unlimited personal liability for debts incurred by the company.
• C) They are not only liable for their own mistakes but also for that of their partners.
• D) Their personal wealth is not at risk as long as they do not actively participate in managing the company.

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Definitions:

Weaknesses

Areas of lack or deficiency that may hinder achievement or performance.

Strengths

The inherent capacities or talents that individuals or organizations can leverage to achieve their goals effectively.

Farsighted Organizations

Institutions or groups capable of anticipating future trends, challenges, and opportunities in their strategic planning.

Formally Written

A well-organized, logical, and correctly formatted way of communication, typically used in official or academic contexts.