Which of the Following Is Incorrect with Respect to the Law

question 141

Multiple Choice

Which of the following is incorrect with respect to the law governing limited partnerships?

• A) Limited partners' liability only extends to the amount of money they have invested in the partnership.
• B) Limited partners, once registered as such, are assured of limited liability.
• C) Limited partners can lose their limited status by participating in management.
• D) Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership.
• E) Limited partners can lose their limited status by failing to register as such.

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Definitions:

Instrument Payable

A written document that promises the payment of a definite amount of money either on demand or at a future date.

Definite Time

A specified period in contracts or agreements where certain actions or conditions must be met or take place.

Negotiation

The process of discussing and arriving at a mutual agreement between parties, often involving compromise or the making of concessions.

Holder

An individual or entity that possesses or controls a negotiable instrument, security, or other similar documents, legally recognized as entitled to the benefits of ownership.